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Isetan to stop its own retailing operations at Isetan Orchard by Q2 2015
DEPARTMENT store owner Isetan (Singapore) says it will likely cease its own retailing operations at Isetan Orchard, Wisma Atria, from the second quarter of 2015.
It will continue to lease space to retail and food and beverage tenants at the premises. Its own department store operations will continue at Isetan Scotts Store in Shaw House.
"Together with its other four stores in the suburbs, it is committed to its long-term purpose of running department stores and supermarkets," the company said in a statement on Friday evening.
Isetan reported a loss of S$2.9 million for its third quarter ended Sept 30, 2014, compared to a S$762,000 profit a year ago. Revenue increased 4.4 per cent from S$76.6 million to S$79.9 million, boosted by sales contributions from its new Jurong East store in Westgate mall.
However, although the renovations in the basement of Shaw House and Shaw Centre have been completed, sales for the Scotts store in Q3 2014 showed a gradual improvement only in the preceding quarter and have not fully recovered to pre-renovation levels, the company said.
The company said then that the retail environment in Singapore is expected to remain challenging. "While the group is hopeful that its efforts to improve its financial performance will bear fruit, it is unlikely that FY2014 will be profitable," it said.
Isetan last traded at S$4.58 a share.