Isetan Mitsukoshi (TYO:3099) Plans More Stores in China

Tokyo, Aug 14, 2009 AEST (ABN Newswire) - Isetan Mitsukoshi Holdings Ltd. (TYO:3099), Japan's largest department store operator by sales, is considering opening more stores in China over the next several years to boost its overseas business amid shrinking demand in Japan, said sources.

It is reported that the company is in talks with real estate firms to set up large-scale stores with sales floors of about 30,000 square meters in cities such as Shanghai and Tianjin.

It is searching for sites in other coastal cities where incomes are relatively high, such as Beijing, Qingdao and Dalian. To attract affluent consumers, these stores will carry a full lineup of products, ranging from food to European and American designer goods.

Isetan Mitsukoshi last week posted a net profit fall of 50% for the April-June period, as consumption in Japan was lower amid worries about employment and income conditions.

But China's total retail sales of consumer goods for the six months in 2009 continued its strong performance with a 15% rise over the same period of last year, according to data released by the Chinese government.

Isetan Mitsukoshi's sales in China enjoyed double-digit gains for the first half of year. The company, which currently operates four Isetan stores and one Mitsukoshi store in China, will double its network to 10 by opening five new stores by 2014.

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Michelle Liang Asia Business News Asia Bureau Tel: +61-2-9247-4344 Email: michelle.liang@abnnewswire.net