Retail in Asia

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Japanese department stores’ decline continues

Japanese department store operators Takashimaya and H2O Retailing Corporation have scrapped plans to merge their operations by 2011.

The department store operators agreed to the merger in October 2008, following a series of negotiations. However, they concluded that the planned merger would offer insufficient synergies. "We each have different organisational structures and are running our day-to-day operations differently, so this has made it difficult for the two companies to unify different corporate governance styles," H2O Retailing chairman Shunichi Sugioka said.

Meanwhile, the Japanese department store sector continues to struggle with excess floor space and outdated business models.

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(Source: Retail Week)