Magazines Archives - 2008 November

Takashimaya, H2O Retailing to merge by 2011
Story 13 - News

TWO of Japan’s leading department stores, Takashimaya Co Ltd and Osakabased H2O Retailing Corporation, plan to merge their operations to step up efficiency in light of the economic slowdown and declining population in the country.

“Consumer spending in Japan will undergo huge structural change due to the ageing population,” Koji Suzuki, president of Takashimaya, told the local media in a news conference. “We have long felt the need to consider alliances or mergers, looking at the rough business environment ahead.”

The move will begin with each party buying a 10% stake in the other by next February, leading to a full merger by 2011. They will then work together on various operational areas such as cost reduction and product procurement.

While both companies added that they would not merge or rebrand their store chains, the strategy will put them on par with the country’s current leader, Isetan Mitsukoshi, which has undergone a merger.

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