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Tag: Isetan

  • Isetan Singapore losses mount

    Isetan Singapore losses mount

    Isetan Singapore has reported a third straight quarterly loss. The high profile, Japanese-owned four store strong department store chain has more than doubled its loss of the same quarter last year.

    The company says sales were down in all of its stores, a trend evident in the results of other locally listed retailers in recent weeks including Metro and FJ Benjamin, and even Courts whose Singapore sales were down despite a significantly increased profit.

    In the three months to September 30, Isetan Singapore lost S$6.15 million. That compares with a $2.93 million loss in the same quarter last year and a $5.85 million loss in the preceding quarter to June 30.

    Sales fell 14 per cent year on year to $68.71 million, partly due to the March closure of its Isetan Orchard store at Wisma Atria. (The company will now lease that space to various retailers.)

    “With the exception of Isetan Jurong East which is still experiencing growth in sales, the other stores had lower sales,” Isetan Singapore said in a statement.

    “Moving forward, the slower economic growth may impact sales and the trading environment is expected to remain very competitive among retailers.”

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  • Bleak result for Isetan Singapore

    Bleak result for Isetan Singapore

    Japanese department store operator Isetan has reported mounting losses in Singapore as sales fall and rents rise.

    Group sales for the three months to June 30 were $71.467 million, a decrease of $10.819 million or 13.15 per cent over the same quarter a year ago. Isetan said the decrease was largely due to the closure of its Isetan Orchard store at the end of March to prepare the store space for subletting, and a slowdown in sales in all of its stores (except Isetan Jurong East) “due to an environment of slower economic growth and stiff competition amongst retailers”.

    In the second quarter the company incurred a loss after tax of $5.847 million, compared to a loss of $1.214 million in 2014.

    Higher rent at Isetan Scotts, affected both the store’s result and was the main reason for the overall increase in the rent outgoings.

    “At Isetan Orchard, the process of finding tenants and converting the space for renting out is ongoing,” the company said in a statement.

    “In this respect, there was no rental income from this store during Q2.”

    “At Isetan Jurong East, although the store is experiencing sales growth, it is not contributing to profits yet. The general slowdown in sales was also a drag on the results of the Group for Q2.”

    Its other stores are at Katong, Tampines and Serangoon Central.

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