This article first appeared in The Edge Financial Daily on December 31, 2019

KUALA LUMPUR: Department store operator Parkson Corp Sdn Bhd — which shut its Suria KLCC store and the Parkson M Square Mall store in Puchong this year — is preparing to shut down its outlet in MyTOWN Shopping Centre, Cheras. This store has been operating for less than three years.

Parkson in its Facebook update on Dec 26 put up a post that reads: “Clearance Sale. Everything must go.”

When contacted by theedgemarkets.com, a Parkson spokesperson confirmed that the store will cease operation. “The store is scheduled to close on Feb 2, 2020,” the spokesperson said, adding that the store opened for business on March 16, 2017.

On why it was closing the store, the spokesperson said: “The retail market is very dynamic. Store opening and closing is part and parcel of doing business. In Malaysia, shopping malls are mushrooming everywhere and the demographics are ever changing.”

The MyTOWN store is Parkson’s 45th store in Malaysia. It occupies 150,000 sq ft of retail space over three floors.

It is noteworthy that Parkson had just three months prior to the opening at MyTOWN opened an outlet at Sunway Velocity Mall in December 2016. Sunway Velocity is just 600m from MyTOWN. Parkson occupies 134,000 sq ft of space at Sunway Velocity.

Parkson currently has 43 stores. When asked if there could be other store closures, the spokesperson said: “The retail scene is increasingly competitive; when sales do not meet expectations, we have to cut losses and move on. Similarly, shopper demographics are constantly evolving.”

On Feb 17, Parkson shuttered its 126,000 sq ft outlet in Suria KLCC. Parkson had been operating there since 1998.

On June 30, Parkson closed the Parkson M Square Mall, located in Millenia City, Puchong. The store closed after 18 months of operating. It occupied 349,999 sq ft of retail space, including two levels of car park. Apart from the department store, the retailer also offered Foodpark Supermarket by Parkson, which is a gourmet supermarket and food hall.

Meanwhile, it was reported last week that a firm owned by the Selangor State Development Corp (PKNS) and Andaman Group is suing Parkson for allegedly failing to pay rent for a retail space in EVO shopping mall in Bangi.

Parkson is wholly owned by Singapore-listed Parkson Retail Asia Ltd (PRA), which in turn is a subsidiary of Parkson Holdings Bhd. PRA operates Parkson Holdings’ stores in Malaysia, Vietnam and Indonesia.

Parkson, however, claims that no rental is payable as PKNS failed to satisfy the condition precedent as set out in the tenancy agreement and that PKNS has backdated the commencement date of rental without satisfying the condition precedent.

Parkson has closed several stores since 2017, including in Megamall Kuantan (September 2017) and Melaka Mall (December 2017) after operating for 10 years. Subsequently, it closed stores in Maju Junction and Sungei Wang in 2018.