Executives at Japanese department store chain Isetan Mitsukoshi Holdings are scaling back their operations in China. They say slumping sales are forcing them to close two stores in Tianjin.

One of the stores was Isetan's first in China. The Tianjin Isetan branch opened 30 years ago. The firm plans to close it around April.

Executives say the outlet took a big hit during the pandemic. In fiscal 2022, it logged a net loss equivalent to almost 2 million dollars. The operator anticipates more pain for this fiscal year.

The closures will take the number of Isetan Mitsukoshi outlets in China from four to just two.

The company says it's changing up its overseas strategy. It's mainly focusing on Southeast Asia, and it plans to develop mixed-use complexes with commercial, residential and office space.