Parkson closes Puchong store after just 18 months
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Malaysian department store operator Parkson has closed its store in Puchong just 18 months after it opened.
The closure follows its exit from Suria KLCC in downtown Kuala Lumpur after 20 years.
A Parkson spokesperson said the Puchong store had not met sales expectations.
“The retail market is very dynamic. Store openings and closures are part and parcel of our business. In Malaysia, shopping malls are mushrooming everywhere and the demographics are ever-changing. Understandably, we are always cautious and selective when choosing new store locations. However when sales do not meet expectations, we have to cut losses and move on,” the spokesman said.
The Parkson Puchong store was located in M Square Mall at Millenia City. It opened in January last year, with 32,516sqm of retail space.
While store closures appear to be an ongoing story within Parkson – it has shuttered multiple stores in Vietnam as well during the last two years – there are some positives to be taken from the company’s recent results. In the nine months to March 31, the company achieved sales growth above 5 percent – double the rate of Malaysia’s department-store sector, according to Malaysia Retailers Association data.
Despite store closures, revenue in the March quarter rose by 2 percent year on year to RM788 million (US$187 million).
Parkson currently operates 43 stores, one more than it had in 2015 but two fewer than in 2017.
Questions & Answers
Q.What reason did Parkson give for closing its Puchong store?
What reason did Parkson give for closing its Puchong store?
A spokesperson for Parkson stated that the Puchong store had not met its sales expectations. They explained that store openings and closures are a normal part of their business in a dynamic retail market.
Q.Where was the Parkson Puchong store located and how large was it?
Where was the Parkson Puchong store located and how large was it?
The Parkson Puchong store was situated in M Square Mall at Millenia City. It offered 32,516 square metres of retail space to its customers.
Q.How did Parkson's sales performance compare to the wider Malaysian department store sector recently?
How did Parkson's sales performance compare to the wider Malaysian department store sector recently?
Parkson achieved sales growth above 5 percent in the nine months to March 31. This growth rate was double that of the overall Malaysian department-store sector, according to industry data.