Takashimaya, the renowned Japanese department store operator, is gearing up to unveil a brand-new shopping destination in Hanoi by 2026. This marks the company’s first venture overseas in eight years.
In an interview with Nikkei, Takashimaya President Yoshio Murata revealed that its subsidiary, Toshin Development, has already kicked off construction on a mixed-use complex in the Vietnamese capital. Alongside the department store, the site will house residential spaces, offices, and retail outlets.
The investment in the department store alone is estimated at around ¥2 billion ($12.9 million), positioning Takashimaya as the first Japanese department store chain to establish a physical presence in Hanoi.
This move underscores Takashimaya’s strategic shift towards Southeast Asia for growth opportunities, given the challenging market conditions in Japan. Vietnam, with its expanding middle and upper classes, is poised to become a key growth market for the company. However, competition is fierce, with local players and international giants like South Korea’s Lotte Group and Japan’s Aeon Mall already present in the market.
“We aim to offer competitive stores that meet the rising demand for Japanese product quality as the standard of living improves,” Murata emphasized.
The new complex will house a department store spanning approximately 10,000 square meters, along with specialty stores. Takashimaya is considering bringing in Japanese tenants to offer a range of products, including food, cosmetics, and children’s clothing.
This venture into Hanoi follows Takashimaya’s successful foray into Ho Chi Minh City in 2016, where its retail complex boasts around 150 specialty shops alongside a department store. The Vietnamese department store business saw operating revenue climb 2% to 3 billion yen in the fiscal year ending February, with a notable demand for children’s products.
Looking ahead, Takashimaya plans to expand its presence in Ho Chi Minh City and explore opportunities beyond commercial development. Murata highlighted the company’s investment in a school project in collaboration with a local partner, signaling a broader commitment to the Vietnamese market beyond retail.
“Our strategy involves a mix of businesses to drive growth and enhance earnings,” Murata stated.
Takashimaya aims to double its operating profit and dividend income from Vietnamese operations to 4.4 billion yen by the fiscal year ending February 2027. Overseas commercial development, particularly in Southeast Asia, will play a pivotal role in driving this growth trajectory.
With China’s economic slowdown impacting its operations in Shanghai, Takashimaya is actively exploring opportunities in other markets, with a keen focus on Southeast Asia.
“We’re open to exploring worthwhile projects, primarily in Southeast Asia,” Murata affirmed.