Retailer Takashimaya to expand in Vietnam, halt operations in China

July 01, 2019 | 15:48

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Japanese retailer Takashimaya has recently announced closing its flagship store in Shanghai in August, which indicates its decision of pulling out of China. Southeast Asia, particularly Vietnam, would be the group's next destination.

retailer takashimaya to expand in vietnam halt operations in china

Japanese retailer Takashimaya is planning opening another store in Vietnam. Photo: Takashimaya's first and only store in Ho Chi Minh City

Takashimaya entered the Vietnamese market in 2016 by setting up its first store in Ho Chi Minh City with the capital of more than $25 million. As reported by VIR in early 2019, Shigeru Kimoto, Takashimaya’s chairman, affirmed that retail is still a potential business line and the corporation will expand in Southeast Asia in spite of the challenges, with Vietnam, Singapore, and Thailand in the focus of their plans. The company is planning to increase sales by expanding daily family services and expects to turn a profit by 2022.

Currently, Takashimaya has three overseas stores, one each in Ho Chi Minh City (Vietnam), Singapore, and Bangkok (Thailand). According to Nikkei, the company’s goal is to turn shoppers into repeat customers at the three Southeast Asia locations.

After three years in Vietnam, the Japan-based department store chain plans to open another outlet in the country, but it has yet to disclose the specific location of this outlet. In Singapore, Takashimaya already generates around 20 per cent of its operating profit.

Meanwhile, in Thailand Takashimaya is relatively new, having opened its first store in August 2018, less than a year ago.

In China, the flagship store caters mostly to the wealthy residents of Shanghai, offering a range of luxury brand items. However, the anti-Japanese demonstrations sweeping across China in 2011 may still be hampering the retailer's activities.

By Luu Huong

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