Japanese department store operator investing in urban development project in capital.
Japanese department store operator Takashimaya is looking to more than double the profits from its overseas businesses in the next four years by fine-tuning product ranges and ramping up channels such as e-commerce in stores throughout Asia, according to a Nikkei interview with its President Mr. Yoshio Murata.
It hopes to boost annual operating profit outside of Japan to 11 billion yen ($1.55 billion) in fiscal year ending February 2024. The key to achieving that goal is turning around businesses in Bangkok, Ho Chi Minh City, and, especially Shanghai, its biggest loss-making store in Asia, according to Mr. Murata.
The store in Ho Chi Minh City is expected to generate 100 million yen ($917,448) in operating profit this fiscal year, and Mr. Murata sees it as potentially “another Singapore.” The company is also investing in an urban development project in Hanoi, where it is planning to open a bilingual school through a joint venture.
In July 2016, through the joint venture between Takashiyama and its subsidiary, the Toshin Development Co., with Keppel Land (Singapore) and two Vietnamese companies, the Takashimaya Group officially launched the first one-stop shopping center at the Saigon Center in Ho Chi Minh City under the name “Takashimaya Ho Chi Minh”.
Saigon Center is located on Le Loi Street in the center of the city and is the most crowded shopping area for middle-class residents living within a 5 km radius. It is also an area with a major road intersection where various public transport meets.
Takashimaya’s retail store expansion into global markets, mainly Southeast Asian countries, is part of its development strategy. Saigon Center is its third destination after Singapore and Shanghai in China.