Malaysian department-store operator Parkson is to quit operating full-scale stores in Vietnam after years of losses.
At one stage the company had 10 stores in the country and was confident of long-term success given it was the first overseas department-store brand to enter the market.
Singapore-listed Parkson Retail Asia announced that subject to shareholder approval, it will sell the Parkson TD Plaza Shopping Centre it anchors in the northern port city of Haiphong for US$10M, representing a $500,000 loss on book value, but a $500,000 premium on local valuation.
The disposal leaves just one property remaining in downtown Ho Chi Minh City, which used to house the brand’s flagship in the country. A large part of that store has since been leased out to Uniqlo and another Japanese retailer, Muji, is believed to be currently fitting out at least part of the remaining space.
“Following the completion of the disposal of the Haiphong property, Parkson Vietnam will only continue its business of operating and managing the store in Ho Chi Minh City, and will cease to operate any Parkson brand department store on the property.”
