The Uni-President Group (統一集團) is ceasing its partnership with Japan's Takashimaya Department Store in developing the food giant's first department store, due to disagreement over rents, the group said in a statement released yesterday.
"Takashimaya, wich now sees less-than-ideal business in Japan, has become extra cautious over their overseas expansion plans," Hsu Chung-jen (
In a bid to break into the nation's department store sector, Uni-President in 2000 formed a NT$1 billion joint venture with Takashimaya, in which the two parties each held a 50 percent stake, to operate President Takashimaya Department Store (
The complex was originally scheduled to commence operation last October.
The scotching of the partnership would bring over NT$100 million in losses to each party, Hsu said, and the delay of the complex's operation has caused monthly losses of more than NT$20 million.
Even so, Hsu refused to characterize the case as a setback to the group's efforts to branch into the department-store sector, which requires different know-how from the small-business chain-store industry, in which Uni-President has had phenomenal success.
"We just need a partner who shares our ideals," Hsu said, adding that he cannot confirm who would be their next partner right now. The decision will be made by a committee formed by the building's eight shareholders, including Uni-President, Chinatrust Commercial Bank (中國信託) and Prince Housing & Development Corp (太子建設).
The soured deal has attracted some ambitious retailers into partnership talks with Uni-President, in the hope of extending their business into the Xinyi District. Breeze Center is one of the most aggressive players, although another heavyweight retailer, Pacific Sogo Department Store (太平洋崇光百貨) reportedly topped the list of Uni-President's potential partners.
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