Japanese diversified retail group Seven & I Holdings, which also operate convenience store chain 7-Eleven, will terminate two department stores next year citing tight competition in the local market.
Department stores Seibu in Numazu, Shizuoka and Sogo in Kure, Hiroshima are to be both closed on January 31, 2013.
Seibu Numazu, spread across 9732 sqm began operation in 1957. It experienced its peak in 1991 with 20.6 billion yen (US$259.48 million) net sales, however, recent reports shows a decrease by one third due to intensifying competition around the area.
Meanwhile, the 21,395 sqm Sogo department store in Kure that was opened in 1990, reached its peak sales in 1992 at 21.2 billion yen (US$267.04 million), but severe competition in the region sees it trading at 40 per cent less than that now.
The company expects minimal impact from the store closures on the company’s consolidated business results.
As at February this year, the company operated a total of 26 Seibu and Sogo department stores in Japan.