Takashimaya department store to exit China, shift focus to Vietnam
TOKYO, NNA - Major Japanese department store chain Takashimaya Co. will pull out of China due to stiff competition and a fallout from U.S.-China trade disputes, while shifting its focus to Vietnam.
The company will close its Shanghai outlet on Aug. 25 as the store has struggled with declining sales due to rivalry from online retailers and other local stores, as well as a slowdown in consumer spending, a spokesman told NNA on Tuesday.
The decision also stems from a breakdown in rent reduction negotiations, Takashimaya said in a statement.
Located in the Changning district, the Shanghai store has suffered net losses since opening in 2012, and witnessed a marked downturn in sales after the Sino-U.S. trade row broke out last year.
Takashimaya will dismiss 239 employees and liquidate its local unit, Shanghai Takashimaya Co., as early as 2021, the spokesman said, adding the firm will incur a loss of between 2 billion ($18.5 million) and 3 billion yen ($27.8 million).
The Osaka-based department store group also operates outlets in Singapore, Thailand and Vietnam.
Despite its pullout from China, Takashimaya plans to gear up overseas operations as part of its long-term growth strategy.
The Japanese firm said in April it is placing greater emphasis on Vietnam as part of the strategy. (NNA/Kyodo)