Photo: IC Photo
Japanese department store chain Takashimaya Co. Ltd. will shutter its flagship store in Shanghai and withdraw from the Chinese market due to fierce competition and struggling sales, the Osaka-based company said Tuesday.
Takashimaya, which specializes in Japanese-made clothes and luxury brands, will close its Shanghai store on Aug. 25. The store opened in December 2012, in an effort by Takashimaya to target the city’s large population of wealthy shoppers.
But the 188-year-old retailer failed to fend off competition from Chinese e-commerce sites, and suffered sluggish sales and losses in the past three years. The Shanghai store reported a loss of 8.6 million yuan ($1.25 million) last year, widening from 1.1 million yuan the year before.
Takashimaya isn’t the only foreign retailer that has struggled to win over China’s internet-savvy consumers. Last week, French supermarket chain Carrefour SA said it has found buyers for its Chinese business after several difficult years in the country.