Malaysian department store operator Parkson has closed its store in Puchong just 18 months after it opened.
The closure follows its exit from Suria KLCC in downtown Kuala Lumpur after 20 years.
A Parkson spokesperson said the Puchong store had not met sales expectations.
“The retail market is very dynamic. Store openings and closures are part and parcel of our business. In Malaysia, shopping malls are mushrooming everywhere and the demographics are ever changing. Understandably, we are always cautious and selective when choosing new store locations. However when sales do not meet expectations, we have to cut losses and move on,” the spokesman said.
The Parkson Puchong store was located in M Square Mall at Millenia City. It opened in January last year, with 32,516sqm of retail space.
While store closures appear to be an ongoing story within Parkson – it has shuttered multiple stores in Vietnam as well during the last two years – there are some positives to be taken from the company’s recent results. In the nine months to March 31, the company achieved sales growth above 5 per cent – double the rate of Malaysia’s department-store sector, according to Malaysia Retailers Association data.
Despite store closures, revenue in the March quarter rose by 2 per cent year on year to RM788 million (US$187 million).
Parkson currently operates 43 stores, one more than it had in 2015 but two fewer than in 2017.