Japanese retailer Isetan Mitsukoshi Holdings Ltd. said it plans to exit Thailand, as it looks to close Isetan Bangkok, its 28-year-old department store located in the capital, this coming August.
An Isetan Mitsukoshi official broke the news to local media outlets over the weekend, without disclosing the reason behind the closure.
Located at CentralWorld in Bangkok and covering six floors, the official closing date is set for 31st August, in unison with Isetan Thailand’s contract expiration with landlord, Central Pattana — a developer under the Thai conglomerate Central Group.
Isetan Thailand and its restaurants, located on the sixth floor, may be open or closed after that date, depending on the decisions of their management teams.
The Isetan exit will make way for a new Japanese-style shopping outlet, according to
deputy CEO of Central Pattana Plc., the Central Group shopping center developer. The group has been renovating its shopping mall network with plans to increase its malls to 51 by 2024.
The new Bangkok mall will open its doors sometime between July and September in 2021, according to the Bangkok Post.
The six-storey Isetan opened its store at the complex, formerly known as the World Trade Center, in Bangkok in 1992.
According to its most recent financial statement, Isetan Bangkok forecasts sales of 4.2 billion yen ($39 million) and a net profit of 32 million yen for the fiscal year ending March 2020. The expectation is a 10% and 60% decline, respectively, compared to last year.
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According to the latest market research report by Technavio, the retail market in Thailand is expected to post a CAGR of close to 7% during the period 2019-2023, boosted by increased tourist numbers with most arrivals coming from China, followed by various other Asian countries, including Japan, South Korea, Australia, and India.