Yamada Denki to close Nanjing store due to poor sales over boycott

April 23, 2013

THE ASAHI SHIMBUN

Yamada Denki Co. announced April 22 that it will shutter its store in Nanjing, China, partly due to sluggish sales prompted by a boycott of Japanese goods over the Senkaku Islands dispute.

Japan's largest home-electronics retailer said the Nanjing store will close at the end of May.

With more than 700 stores in Japan, Yamada Denki opened its Nanjing outlet in March 2012, as its third establishment in China.

Although Yamada Denki has been focusing on expanding its sales network in China, the Nanjing store’s sales did not take off, according to a press release.

The company said it is considering selling or renting the store.

Yamada Denki will continue operating its stores in Shenyang and Tianjin, which opened in December 2010, and June 2011, respectively.

Meanwhile, with television sales sluggish, Yamada Denki on April 22 revised downward its fiscal 2012 forecast. It lowered sales estimates to 1.7 trillion yen ($17.2 billion) by 14 billion yen, and net profits to 22 billion yen, down 12 billion yen, from its previous forecast in February.

THE ASAHI SHIMBUN
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Noboru Yamada, chairman of Yamada Denki Co. (Asahi Shimbun file photo)

Noboru Yamada, chairman of Yamada Denki Co. (Asahi Shimbun file photo)

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  • Noboru Yamada, chairman of Yamada Denki Co. (Asahi Shimbun file photo)

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