TOKYO — Takashimaya Co. will open a department store in Vietnam’s Ho Chi Minh City in 2015 as part of its international push.
The store will occupy approximately 160,000 square feet over five floors of the multi-purpose complex Saigon Center, one of Ho Chi Minh City’s most desirable addresses, the retailer said.
The first development phase of the complex was completed in 1996, but a second stage is planned for completion in 2015. Takashimaya said the complex is ideally located not only in the city’s central business district, but also within three miles of wealthy residential neighborhoods. Planned subway lines and highways will serve the area, making it easily accessible from other parts of the city.
The Japanese department store operator pointed to a ten percent increase in Ho Chi Minh City’s real gross domestic product in 2011, as well as growing middle and upper classes, as reasons for the good timing of the move. It also cited an average age of less than 30 in Vietnam’s largest city, saying that the market has immense possibilities.
As the department store business in Japan continues to struggle, many retailers are setting their sights on elsewhere in Asia. Takashimaya currently operates stores in Taipei and Singapore, where it claims it has been performing well.