Japanese retailer Ito-Yokado has withdrawn from direct operations in Beijing, selling its majority stake in its local subsidiary, Huatang Yanghuatang (华糖洋华堂), to a Chinese company. This ends its active management of stores in the capital, leaving only a brand licensing agreement. The decision follows persistent underperformance in the Beijing market. The subsidiary’s sales reportedly fell sharply, impacted by slowing consumption, the rise of online retail, and intense price competition. Ito-Yokado’s strategy in China now focuses on improving the profitability of its six remaining stores in Chengdu. This restructuring is part of broader efforts by its parent company, U.S. investment firm Bain Capital, to streamline operations.

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