Yongxin Department Store to close

The Yongxin Department Store, in Shanghai's Huaihai Road, is expected to close by the end of the year.

That will leave Shanghai with only four of the once famous 12 State-owned department stores in the city.

Uniqlo is expected to open its second and largest global flagship store in the Yongxin building.

Opened in April 1996, Yongxin sells mainly clothing, as well as other articles of daily use. It was established by the Shanghai No 2 Department Store and Hong Kong Yongxin Department Store Co Ltd.

The store is being closed due to its poor performance. There are many other competitive fashion department stores in the same area, such as the nearby Parkson store.

Stocking little premium brands, Yongxin has instead many non-mainstream brands, which don't attract customers, and it didn't have a clear customer target for a long time, experts said.

With only 10, 000 square meters and an old shopping environment design, Yongxin's business area is also much smaller than those of new department stores.