What: Isetan Mitsukoshi is acquiring the remaining 47.27% stake in Isetan Singapore Limited for US $103.6 million, making it a wholly-owned subsidiary.

Why it is important: This move towards privatization comes as Isetan Singapore has experienced a decline in sales and profitability, reflecting broader challenges in the retail sector. For Isetan Mitsukoshi, this acquisition signifies a strategic consolidation, potentially enabling more streamlined operations and focused growth strategies in the Singapore market.

Established in 1970 and listed on the Singapore Exchange in 1981, Isetan Singapore has been a significant player in the country's department store landscape, operating three Isetan-branded stores. However, the recent financial downturn, with a 3.8% drop in sales and a shift from profit to a net loss in FY23, underscores the pressures facing traditional retail. The acquisition by Isetan Mitsukoshi, expected to conclude in August, marks a pivotal shift, as the parent company seeks to revitalize its Singapore operations amidst broader regional adjustments, including the closure of its flagship store in Shanghai after 27 years. This consolidation move by Isetan Mitsukoshi could herald a new phase of strategic focus and operational efficiency in navigating the evolving retail environment.

Isetan Singapore to privatise as Japanese co-owner buys remaining stake