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Takashimaya to sell stake in Taipei department store

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Takashimaya to sell stake in Taipei department store

Takashimaya Co., a leading Japanese retailer, has decided to sell its stake in a jointly owned department store in Taipei to its partner as a way of withdrawing from the Taiwan retail market, the department store said Wednesday.

Takashimaya will sell its 50 percent stake in the Dayeh Takashimaya Department Store in the Shilin District to Dayeh Group, which owns the other half.

The stake will be sold at a price of NT$492 million (US$15.04 million), according to local media reports.

In 1994, Takashimaya and Dayeh teamed up to open the department store in Tianmu, an affluent neighborhood in Taipei, where many foreign expatriates live.

The department store once generated annual revenue of NT$5.8 billion but has been encountering stiff competition in the Tianmu area since businesses such as Pacific SOGO and Shin Kong Mitsukoshi department stores entered the market, analysts said.

In 2014, Takashimaya Dayeh spent NT$1.2 billion to remodel, hoping that a new image would attract young consumers, but has not been able to meet its goal of NT$5 billion in annual revenue.

Pacific SOGO and Shin Kong Mitsukoshi, meanwhile, have been increasing their share of the department store business in Tianmu, which is estimated at NT$10 billion a year.

Takashimaya Dayeh said that over the past 20 years, it has built a management team that largely comprises local talent, and the share sale is not likely to affect its operations.

Dayeh Group is a Taiwan conglomerate that has a wide range of businesses, including retail, restaurants, health care, car engine development and property development.

The withdrawal of Takashimaya from the department store business in Taipei follows a similar move in March by Japan-based Hankyu, which was a joint owner of the Uni-President Hankyu Department Store for about 10 years.


Updated : 2022-05-18 17:46 GMT+08:00