Takashimaya eyeing Malaysia?

THE EDGE WEEKLY ISSUE#1001

THE WEEK OF FEBRUARY 10 – 16, 2014

By: VASANTHA GANESAN

Renowned Japanese department store operator Takashimaya Co Ltd may be making its way to Malaysian shores.  The retailer is believed to be scouting for a suitable location in the country and may have even set its sights on having a presence at the Tun Razak Exchange (TRX) in Kuala Lumpur (KL).

According to sources, Takashimaya has been interested in the Malaysian market for several years but it was only recently that it became more aggressive in surveying the market in search of a right location.

Top-level management of Takashimaya Singapore Ltd, a unit of the retailer, made several visits to Malaysia last year to gather information on the retail scene.  “They were here to look at locations, economy, spending power, possible positioning and potential target market,” a source tells The Edge.

Malaysia, which is fast becoming an international shopping haven, is set to record retail sales to the tune of RM98 billion this year.

It is learnt that Takashimaya conducted night surveys on the Malaysian market last year.  Night surveys are done by collecting occupancy data on number of lights that are switched on at the high-rise residences and office towers within an area.  They are said to give an indication of whether the buildings are occupied or are left empty by the investors.

The Edge understands that should Takashimaya enter the Malaysian market, it will be through its Singapore subsidiary.  The Singapore store opened in 1993.  Many Malaysians are most familiar with Takashimaya’s store in Ngee Ann City in Orchard Road, but the retailer also operates in France, Taiwan and China.

A media officer at the advertising and promotions department of Takashimaya Singapore, when contacted by The Edge, says his department cannot disclose anything on the matter.  He advised The Edge to speak to the general manager.  The office of the general manager, however, says it has no authority to comment on it.

Previous news reports stated that Takashimaya was contemplating opening a store in Malaysia and Indonesia and its strategy was to operate eight stores in Asia within five years from 2013.  It now operates three stores in Asia – Taiwan, China and Singapore – and is scheduled to open an outlet in Vietnam next year.

Another source tells The Edge that Takashimaya is eyeing an opening at TRX, the up-coming international financial district in (KL).  Sitting on 28.35ha o freehold land, TRX is expected to have world-class residential, retail, leisure and cultural offerings.  The project will be developed over 15-20 year-period.

In December 2013, master developer, IMDB Real Estate Sdn. Bhd. invited international and domestic investors to submit proposals for Stage 1 of TRX.  Stage 1 comprises four office towers, including a signature tower, up to five residential towers, up to two five-star hotels and a retail mall.  This phase is slated for completion in 2017.

TRX offers incentives to partners and investors such as income tax exemption of 70% for five years for building development while tenant incentives include a 10-year tax deduction for rents or building purchase, stamp duty exemption for initial leasing or purchase of a building and tax deduction for relocation costs.

CBRE is the marketing consultant for the initial market sutudy and the sale / joint-venture for the lifestyle parcel, which includes commercial, retail, hotel and residences.  CBRE managing director Allan Soo, when asked if Takashimaya is planning a store at TRX, declined to comment.

Takashimaya Singapore has been used by the group to venture into another Southeast Asian country – Vietnam.  Two years ago, the group announced that it will be opening a store in Saigon Centre in Ho Chi Minh City in 2015 and will be the anchor tenant.

Takashimaya’s origin dates back to 1831 when its first shop selling kimonos opened in Kyoto, Japan.  Nine years later, it expanded throughout Japan.  Today, it operates 20 modern department stores in Japan.

The possible entry of Takashimaya follows news of yet another department store operator which has Malaysia on it radar.  The Edge recently reported that France’s Galeries Lafayette has also made visits to the country with plans to open here.

Other Japan-based department store operators in Malaysia include Isetan and Aeon.  Recently, several Japan-based speciality stores, such as Uniqlo, Daiso and 100 Yen Shop, were seen building their networks in the country.E