TOKYO — Seibu Department Stores will close its Yurakucho unit this year, Sogo & Seibu Co. Ltd. said Wednesday.
Located in Yurakucho, an entrance to the Ginza district, the store had a reputation as a major fashion-specialized store for working women since it opened in October 1984. It has also been known as an integrated beauty and health care store since its renovation in September 2006.
However, “a stable profit-making structure has not been established even after a couple of renovations,” said Seibu. Sales in the fiscal year ended Feb. 28, 2009, were 16.2 billion yen, or $160.6 million, 8.5 percent down from a year ago, and sales during fiscal 2009 are “expected to drop 15 percent from the previous fiscal year,” said the firm.
Sogo & Seibu is taking steps to strengthen its business and management foundation as well as enhance its asset efficiency. As a part of those initiatives, Sogo & Seibu closed Sogo Shinsaibashi at the end of August and Seibu Sapporo at the end of September.
The Yurakucho store will be closed on Dec. 25. Sogo & Seibu is a subsidiary of Seven and i Holdings Co. Ltd., which said the impact of the store closure on the company’s consolidated business results will be minimal.