The Ho Chi Minh City store, which opened in 2016, will be expanded to carry more items for families, while another outlet in Vietnam is on the cards.
Japanese department store chain Takashimaya will halt its operations in China, paving the way for opening another outlet in Vietnam, Nikkei Asian Review reported.
The store has been losing money and the Osaka-based company decided it would be difficult to turn the business around as private consumption has slowed in China amid the trade war with the US.
The retailer will hold talks with local authorities on the closure of its flagship store in Shanghai. The focus of Takashimaya's overseas operations will shift to Southeast Asia, a region the company sees as more promising.
The Shanghai store, which opened in 2012, has a floor space of 40,000 square meters, about the size of a big outlet in Japan. It caters mostly to wealthy residents of Shanghai, offering a range of luxury brand items.
The Shanghai store got off to a bumpy start the year after violent anti-Japanese demonstrations swept China in 2011. The store's opening also coincided with the takeoff of online shopping, further denting business.
For the year to February, the Shanghai store reported sales of US$29.6 million, up 0.7%, and an operating loss of 900 million yen, its seventh straight year of red ink.
Despite the stumble in China, Takashimaya will continue its overseas push.
The company has three other outlets abroad -- in Ho Chi Minh City, Bangkok and Singapore. The Ho Chi Minh City store, which opened in 2016, will be expanded to carry more items for families.
Takashimaya is also considering opening another outlet in Vietnam. The store in Singapore is doing well, generating some 20% of the company's operating profit. The Bangkok outlet opened in the fall of 2018.
The company's goal is to turn shoppers into repeat customers at the three Southeast Asia locations.
Takashimaya's store in Shanghai.
|
The retailer will hold talks with local authorities on the closure of its flagship store in Shanghai. The focus of Takashimaya's overseas operations will shift to Southeast Asia, a region the company sees as more promising.
The Shanghai store, which opened in 2012, has a floor space of 40,000 square meters, about the size of a big outlet in Japan. It caters mostly to wealthy residents of Shanghai, offering a range of luxury brand items.
The Shanghai store got off to a bumpy start the year after violent anti-Japanese demonstrations swept China in 2011. The store's opening also coincided with the takeoff of online shopping, further denting business.
For the year to February, the Shanghai store reported sales of US$29.6 million, up 0.7%, and an operating loss of 900 million yen, its seventh straight year of red ink.
Despite the stumble in China, Takashimaya will continue its overseas push.
The company has three other outlets abroad -- in Ho Chi Minh City, Bangkok and Singapore. The Ho Chi Minh City store, which opened in 2016, will be expanded to carry more items for families.
Takashimaya is also considering opening another outlet in Vietnam. The store in Singapore is doing well, generating some 20% of the company's operating profit. The Bangkok outlet opened in the fall of 2018.
The company's goal is to turn shoppers into repeat customers at the three Southeast Asia locations.
Other News
- Better links with FDI firms to support Hanoi businesses
- Vietnam calls for more US investment in innovation, hi-tech
- Vietnamese leader urges Boeing to build production facility in Vietnam
- Foreign capital pouring into Vietnam's real estate market
- Vietnam news in brief - August 24
- Growing number of FDI firms moving to Vietnam
- Vietnam Gov’t committed to facilitating Adani Group’s US$2-billion port project
- Vietnam Railway proposes US$87 million for Hanoi–Dong Dang railway upgrade
- Vietnam’s North-South high-speed railway to be designed for 350km/h
- Vietnamese gov’t urged to address impact of global minimum tax
Trending
-
Capital Law to make Hanoi major center for quality education
-
Vietnam news in brief - November 4
-
Foreign labor in Hanoi: a growth engine that needs thorough administration
-
Hanoi seeks partnerships to build skilled workforce for digital transformation
-
Adorable baby hippo wows Hanoi visitors
-
Localizing idols: Vietnam’s shift from Hallyu to homegrown stars
-
Hanoi plans major upgrade for iHaNoi by 2026
-
Berlin Film Festival award-winning motion picture premieres in Vietnam
-
Love triangle drama opens Hanoi Open Stage Festival