TOKYO — Isao Nakauchi, who founded supermarket chain Daiei and revolutionized Japan's retail industry, died yesterday of a stroke. He was 83.

Daiei Inc., based in the western Japanese port city of Kobe, was founded in 1957 by Nakauchi, a charismatic businessman who was praised for bringing American-style, large-scale discount retail methods to a nation long dominated by mom-and-pop stores.

Daiei grew to become the biggest Japanese retailer during the 1970s. But as imitators sprang up, Daiei fell into financial trouble and has struggled under the burden of huge debts amassed during years of over-expansion in the 1980s. It was taken over by a government-backed rehabilitation organization this year.