Takashimaya, H2O plan to merge in three years

By Taiga Uranaka TOKYO (Reuters) - Takashimaya Co (8233.T: ), Japan's third-biggest department store operator, and smaller rival H2O Retailing (8242.T: ) plan to buy stakes in each other as a first step towards a merger to survive in the country's mature retail market. Takashimaya had been the country's top department store until a wave of consolidation swept through the industry last year, creating bigger rivals Isetan Mitsukoshi Holdings (3099.T: ) and J. Front Retailing Co Ltd (3086.T: Department stores have been joining hands to become more efficient as the population shrinks and the economy slows. They also face increased competition from drugstores and suburban shopping malls encroaching on their turf. Industrywide revenues have declined for the past 10 years, during which nearly 1.5 trillion yen ($15.2 billion)... [read full story]