Parent company of the popular clothing brand Uniqlo, Fast Retailing plans to optimise the brand’s store operations in China by closing 50 underperforming stores while simultaneously opening 80 new ones.
Takeshi Okazaki, Chief Financial Officer, Fast Retailing, reveals, the company aims to achieve comparable average store sales in China to those in Japan within the next decade. To attain this goal, it will focus on shuttering unprofitable outlets over the next 2-3 years, directing its efforts towards launching new stores in high-traffic areas and prime locations.
By the end of the Japanese fiscal year ending in August 2024, Fast Retailing plans to increase Uniqlo storecount in China by 30 stores. Beyond August 2024, it may shift to maintaining a modest net increase in store numbers, adds Okazaki.
Fast Retailing also aims to bolster its e-commerce sales, which currently constitute 20 per cent of its revenue in the Chinese market.
Despite boasting over 1,000 stores in China, Uniqlo's sales in the country still trail behind those in Japan. As of the fiscal year ending on Aug 30, 2023, Uniqlo reported sales of Yen 890.4 billion from its 800 stores in Japan, compared to Yen 620.2 billion from 1,031 stores in China.
