Isetan outlet in Shanghai to close in November

Sunday 31st August, 04:14 AM JST

TOKYO —

Isetan Mitsukoshi Holdings Ltd says that one of its Isetan department stores in Shanghai will be closed in November due to slumping sales. The store, Huating Isetan Shanghai, is the first Chinese outlet of Isetan opened in 1993.

Huating Isetan Shanghai’s sales peaked at 3.6 billion yen in 1996. But its sales then began falling amid growing competition and stood at 2.4 billion yen in 2007. The store suffered a net loss for the second straight year in 2007.

Huating Isetan Shanghai will be the second Isetan outlet in China to be shut down following one in Jinan, Shandong Province, which was closed in September last year.

JCN

8 Comments

Betting at 04:09 PM JST - 31st August

Do any of the Japanese department stores that have branches overseas make regular profits? From the basic knowledge I have it seems they open, have a good first year then close shortly after that.
somo99999 at 04:45 PM JST - 31st August

speaking out my opinion : -

The move by Isetan is not an isolated case. More and more overseas retailers operating China have begun closing shop since the beginning of this year. Some were predicting the Beijing Olympics 2008 event would bring in fresh spending by the consumers but it failed. With a declining stock market and exit of foreign capital, the retailing business in China is only going to get worst. Isetan made the correct move by cutting their losses and closing their outlets in China.
okapake at 05:27 PM JST - 31st August

Jusco is doing great!
eleewhm at 06:44 PM JST - 31st August

sad how many more in china does Isetan has
some14some at 02:33 PM JST - 1st September

The Chinese will pay for products only, not for glittering wrapping papers/seals.
LIBERTAS at 03:44 PM JST - 1st September

Could it possibly be because Chinese consumers can match their clothes? Instead of the paisley with check with polka dots with plaid with mis-matched green or orange shoes like here? Maybe they don't want to imitate fashion victims?
PepinGalarga at 03:16 AM JST - 2nd September

Japanese dept. stores in China depend slightly on Japanese population in China. In the last 15 years this has been decreasing more and more due to cutbacks for Japanese expats. Basically, now these depaato have to compete with much cheaper generic local stores in China. Will be difficult to compete, even though if Isetan's goods in China are mostly made in China.
rajakumar at 12:10 PM JST - 5th September

China isetan oulets close, because there already too much competition in these kind of retail businesses.

Japan must move to products assembling and selling for other kinds of business products, for which competition is still low and there is need for higher quality.