MANILA - Stores Specialists Inc. said Friday it agreed to form a joint venture company with Japan's Ryohin Keikaku Co. Ltd. to further develop the Muji retail business in the Philippines.

Stores Specialists, a unit of the SSI Group, said it will invest P89.2 million for a 51 percent stake in the joint venture. Ryohin Keikaku will invest P85.75 million for the remaining 49 percent stake.

Under the agreement, SSI will provide the joint venture with operational knowledge and apparel and retail sales expertise while its partner will provide brand management expertise.

"The joint venture with Ryohin Keikaku is expected to strengthen the Muji brand in the Philippines and enable cost efficiencies," SSI told the stock exchange.

The joint venture, to be named MUJI Philippines Corp., is expected to start operations on April 1, 2017, it added.

SSI shares were down 1.15 percent to P2.57 on Friday.