Hiroshi Onishi plans to step down as president and chief executive officer of leading department store operator Isetan Mitsukoshi Holdings Ltd. at the end of this month, informed sources said on Monday.
Onishi, 61, intends to take responsibility for the recent poor performance of the company, the sources said.
Isetan Mitsukoshi has been suffering sluggish sales, including of its mainstay clothing items. The company has pushed back its goal of achieving ¥50 billion in operating profit in the year ending March 2019.
Department stores in Japan are facing intense competition with online and other retailers, weak consumer spending and a lull in buying by foreign visitors to Japan, mainly Chinese.
Isetan Mitsukoshi depends more on department store operations for profits than its rivals, according to Onishi. In the year ending March 31, its group operating profit is expected to tumble 27.5 percent from the previous year.
Onishi, who took the helm in February 2012, led the company’s expansion in the travel and restaurant sectors, aiming to meet a shift by consumers toward experience-oriented services and away from product purchases alone. But some experts say his efforts have yet to pay off.
(Source: Japan Times)