Isetan Mitsukoshi Holdings Ltd. plans to close its store in Shenyang in northeastern China, company officials said Thursday, citing poor business conditions.
Isetan Mitsukoshi is considering various options to withdraw from the city in Liaoning Province, including selling the store to a third party, the officials said. .
Isetan Shenyang has been in the red since opening in February 2008, according to the department store chain. The store, with a floor space of about 30,000 sq. meters, has been struggling amid fierce competition with local retailers.
A public relations official of Isetan Mitsukoshi said the planned withdrawal “has nothing to do” with the soured ties between Japan and China over the Senkaku Islands in the East China Sea.
Isetan Mitsukoshi opened its second store in Tianjin in mid-January and remains on course to open a store in Chengdou in late 2014.