Iconsiam to host Takashimaya store

Iconsiam to host Takashimaya store

Takashimaya, a 185-year-old Japanese department store chain, will open its first branch in Thailand in Iconsiam, a premium shopping-cum-residential project on the Chao Phraya River, in 2017.

Takashimaya's Koji Suzuki (second right) shakes hand with Iconsiam's Pasinee Limatibul as Narong Chearavanont (left) and Yoko Yasuda look on.

Takashimaya Singapore and the mega-development owner Iconsiam Co will set up a joint venture, Siam Takashimaya (Thailand), with 1.2 billion baht in registered capital, to operate the store.

The joint venture will be 51% owned by Takashimaya and 49% by Iconsiam Co.

The opening of the luxury department store marks a comeback by Japanese retail stores after two decades of decline.

During this period, several Japanese department store chains have thrown in the towel and left Thailand's retail market.

They include Daimaru, Yaohan and Sogo.

At present, only Tokyu and Isetan department stores, Loft speciality store and Aeon's MaxValu supermarket have outlets in the country.

"Thailand has both negative and positive factors. But looking back at the country over the past 30 or 40 years, I see more positive things," said Koji Suzuki, chairman of Takashimaya Co.

"I'm confident in the future of Thailand, so I decided to invest here and hope our business will break even quickly."

The first Takashimaya department store will be built at a cost of 3 billion baht.

Takashimaya in Iconsiam will have a gross floor area of 36,000 square metres and carry a full line of luxury brands, cosmetics, women's wear and accessories, menswear and accessories, lifestyle products and premium food and beverages.

There will also be a selection of products that will be exclusively available at this location as well as ones that will be specifically designed for the needs of Thai customers and regional visitors.

"Thailand is an important destination for Takashimaya because the country's per capita income is now at a level to create a rapid expansion of customers who will seek our quality products," Mr Suzuki said.

Takashimaya Co managing director Yukata Yamaguchi predicts the new store in Bangkok will be a sensation, as it will offer certain Japanese and international brands for the first time here.

Apart from its first branch in Iconsiam, the company is studying plans for the potential opening of more stores in Thailand, he said.

Takashimaya has 19 department stores in Japan.

The first one outside Japan opened in Singapore 21 years ago, while Taiwan and China now have one store each.

Japan's oldest retail company plans to open a new department store in Ho Chi Minh City in 2016 and two more Asean branches outside of Thailand in 2018.

In fiscal 2013, Takashimaya achieved consolidated operating revenue of 904 billion yen (273 billion baht) for an operating profit of 29.1 billion.

With its expansion both locally and abroad, consolidated operating revenue is expected to rise to 920 billion yen for an operating profit of 48 billion this year.

Iconsiam Co chairman Pasinee Limatibul said having Takashimaya as a new retail anchor in Iconsiam would help to further strengthen the positioning of the 50-billion-baht project as a new tourism landmark for Bangkok.

"Takashimaya's entry is expected to create another revolution in the Thai retail scene," she said.

Narong Chearavanont, vice-chairman of Iconsiam, said Takashimaya's investment reflected foreign investors' confidence in Thailand and enhanced Thai-Japanese commercial relations.

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