Aeon Malaysia has announced the imminent closure of its Index Living Mall furniture outlets.

In a stock exchange filing, the company said the decision was based on losses from its investments in Index Living Mall, with net profits dropping 64.5 per cent in this year’s second quarter result.

Aeon Malaysia owns 49 per cent of Thai-headquartered Index Living Mall business in Malaysia.

The affected outlets are located at Aeon Shah Alam and Kota Baru, IOI City Mall, Putrajaya and Aeon Mall Tebrau City, the latter store located within several hundred metres of a new rival Ikea store.

Aeon Malaysia says it will continue to refurbish selected stores and employ appropriate marketing and pricing strategies for its retail business. It expects occupancy and rental rates for its property management services to remain stable and sustainable.