What: Central Retail is divesting La Rinascente to concentrate resources and management attention on its core Southeast Asian markets.

Why it is important: This move reflects a strategic shift toward high-growth markets, aligning with recent trends of regional consolidation and operational focus.

Central Retail is finalising the sale of its Italian department store chain, La Rinascente, to its sister company Central Group, marking a decisive move to streamline its portfolio and focus on Southeast Asia. The divestment, which represents just 7% of Central Retail’s revenues, is expected to strengthen the company’s balance sheet, free up capital for expansion in Thailand and Vietnam, and enable a special dividend for shareholders. The decision is also driven by the complex regulatory environment in Italy, which has proven costly and unpredictable compared to the more favorable business climates of Thailand and Vietnam. Central Retail’s recent financial results have been mixed, with overall revenues declining and persistent underperformance in segments like Nguyen Kim in Vietnam. Despite these challenges, the company continues to expand its presence in Southeast Asia, opening new malls and launching wholesale formats to capture growth in emerging markets. The shift away from Europe is timely, as macroeconomic headwinds and operational inefficiencies underscore the need for a sharper regional focus.

IADS Notes: Central Retail’s divestment of La Rinascente and renewed focus on Southeast Asia mirrors a broader industry trend of portfolio consolidation and prioritisation of high-growth markets, as reported by The Nation in September 2025. This strategy is reinforced by Inside Retail’s March 2025 analysis of Central’s expansion and omnichannel innovation, as well as the persistent operational and regulatory challenges in Vietnam highlighted in the same month. The impact of tourism decline and consumer debt in Thailand, noted by Inside Retail in August 2025, further supports the company’s decision to concentrate on operational efficiency and local market engagement. McKinsey’s March 2025 review confirms the region’s robust growth prospects, validating Central Retail’s strategic realignment.

Central Retail trims Europe ties to refocus on Southeast Asia