Japanese electronics retailer Yamada Denki is to close its store in Nanjing, China in May citing sluggish sales.

The store, which opened in March 2012, has experienced poor sales amid a consumer boycott of Japanese goods over a territorial dispute between China and Japan.

The company says the store is being considered for rental or sale.

Meanwhile, the two stores in Shenyang and Tianjin, which opened in December 2010 and June 2011, will continue to operate.

Yamada Denki has more than 700 stores in Japan. Its consolidated net profit dropped 62 per cent in the year to March 31 as sales of flat-panel televisions weakened.