Malaysia’s department store Parkson has fully pulled out of Hanoi, Vietnam, closing its last store in the city.
Parkson first opened in Hanoi eight years ago, but due to sluggish sales, closed its first outlet, Parkson Keangnam Landmark, in early 2015. The department store had operated three outlets in Hanoi.
Sales slumped by 8.2 per cent from the previous year, logging a loss of USD3.5 million pre-tax.
(Read also: Parkson Retail Asia profit down 72% in Q2)
Besides the drop in footfall and sales at the department stores, the Vietnamese’s consumer habits are also shifting towards online, adding more competition in the business of retailing. Furthermore, the country has seen the opening of more foreign players this year, including Japanese retailer Takashimaya and Aeon, South Korea’s Lotte and recent expansion by Thailand’s Central Group.
Parkson has been downsizing its business in the past three years. The department store operator has said that the closure in Hanoi will not affect the remainder of its branches in the country, namely six stores in Ho Chi Minh City, one in Hai Phong and another in Da Nang.
Parkson opened its first outlet in the country in 2005, becoming the first major foreign player in Vietnam to open an international department store.
The Parkson Viet Tower, located at the prime intersection of Thai-Hai and Tay Son will close its doors on 15 December.