Thursday, 25th March 2010
In Business In Japan,
Japanese firms cancel merger plans
Two department stores in Japan have scrapped plans to merge.
Takashimaya, the third largest department store chain in the country, was set to merge with fellow store H2O Retailing, with initial plans for the team-up announced back in October 2008 and expected to take around three years to complete.
If the deal had gone through, the partnership would have formed a group rivalling market leader Isetan Mitsukoshi in size.
According to president of Takashimaya Koji Suzuki, the two companies could not come to an agreement over the way in which their new stores would be developed.
He also announced that this year, Takashimaya will sell its store on Fifth Avenue in New York.
Both firms have suffered the impact of the global economic downturn, which saw demand for goods fall across the world - Japan has also just emerged from its deepest recession since the end of the second world war.
Written by Kimberley Homer.