Isetan (Singapore) will likely stop conducting its own retailing operations at its Wisma Atria department store from the second quarter of next year.
However, the firm said in a statement posted to the Singapore Exchange website yesterday that in line with its core business, it intends to continue retailing activities and food and beverage services at the premises by housing tenants and providing the necessary facilities management.
"While the company endeavours to lease out all floors of the premises, there is no assurance that it would be able to achieve full tenancy due to market conditions or commercial reasons," it said.
Under such circumstances, the company said, it might continue to operate retailing activities in that part of the premises until tenants are found.
In the meantime, the company will continue to operate its own department store operations in the Orchard Road shopping belt via its Isetan Scotts Store in Shaw House.
Together with its other four stores in the suburbs, it is committed to its long-term purpose of running department stores and supermarkets, Isetan said.
Its four suburban department stores are in Katong, Tampines, Serangoon Central and Jurong East.
Last month, Isetan announced that it had slipped into the red with a third-quarter loss of $2.9 million as a result of a slow growth in sales following renovation works at its Scotts departments store.
Other than its new store at Jurong East, the other outlets also registered lower sales in the third quarter due to a competitive and challenging retail environment, it said.
In October, Isetan had said it was planning to lease out one floor of its Wisma Atria department store to Japanese restaurants and food kiosks, "to spread Japanese food culture".