Is pivoting to property a good strategy for companies diversifying?

DEPARTMENT stores here have been enduring a torrid time in part due to the onslaught of online shopping. After maintaining a presence in Singapore for over 160 years, Robinsons shut its last physical department store here early this year, before subsequently relaunching as an online store.

Singapore-listed Isetan Singapore, which operates department stores here, reported three consecutive years of losses between 2018 and 2020. Over the last 10 years, shareholders' equity has nearly halved from S$198 million at end-2011 to S$107 million at end-2020.

Isetan posted a net profit of S$1.3 million for the first six months of this year. The group will close its store at Parkway Parade next year, and continue to operate stores at Shaw House, Tampines Mall and Nex.