Japanese supermarket operator Ito-Yokado has slashed its interim profit forecast by 59% as restructuring and refurbishment costs take their toll on the group’s bottom line.

For the six months to August Japan’s largest retailer said it now expected group net profits of 7bn yen compared with its previous estimate of 17bn yen.

Ito-Yokado’s said that refurbishment costs in the first six months were far greater than expected for 36 of the 40 stores it had planned to revamp this year.

The half-year results will be released later this month.