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Tag: unqilo

  • Fast Retailing Marks Historic Milestone: First Japanese Retailer To Hit 1 Trillion Yen In Domestic Sales

    Fast Retailing Marks Historic Milestone: First Japanese Retailer To Hit 1 Trillion Yen In Domestic Sales

    Fast Retailing, the parent company of Uniqlo, has made history as the first Japanese clothing company to achieve domestic sales of 1 trillion yen. In the fiscal year ending in August, Uniqlo’s domestic sales increased by 10% to approximately 1.03 trillion yen, equivalent to $6.98 billion. By the end of August, Uniqlo had 784 stores in Japan, the first of which opened its doors in Hiroshima 41 years ago. These impressive domestic sales figures encompass revenue from physical stores, online sales from the brand’s e-commerce site, and 10 franchise locations.

    Fast Retailing’s sales have seen a marked uptick since the fiscal year of 2022, thanks to a series of store and product overhauls. Over the past five years, the company has shuttered 30 stores across Japan. At the same time, the average sales floor space per store has been expanded by 10%, allowing for a broader product display and stirring up customer demand. This strategy resulted in a 13% rise in average sales per store.

    Innovative Business Approach

    Among the company’s operational triumphs was the launch of the ‘Management Cockpit’ platform. This platform gathers product reviews from the online store and customer feedback from the support center. This data is then leveraged to enhance existing products, create new merchandise, and generate demand forecasts.

    The introduction of the platform has allowed Fast Retailing to swiftly manufacture in-demand products, consequently reducing the time from production to sale. Additionally, the platform helps to prevent an oversupply of items by cutting production of those with low demand.

    Future Projections

    Looking at the broader picture, Fast Retailing’s consolidated sales revenue is projected to grow by 10% to 3.4 trillion yen by fiscal year 2025. Net profit is also expected to rise by 10%, setting a new record at 410 billion yen.

    Currently, Fast Retailing holds the third position in the global apparel industry in terms of sales, trailing behind H&M in second place and Inditex, the parent company of Zara, in the top spot.

    Questions & Answers

    What sales milestone has Fast Retailing recently achieved?
    Fast Retailing has become the first clothing company in Japan to reach 1 trillion yen in domestic sales.

    What strategies has Fast Retailing used to boost their sales?
    Fast Retailing has increased the average sales floor space in their stores by 10% and introduced the ‘Management Cockpit’ platform to gather data and improve their product offering.

    What are Fast Retailing’s projections for future sales and profits?
    Fast Retailing anticipates its consolidated sales revenue will grow by 10% to 3.4 trillion yen in FY25, with a net profit increase of 10% to a record 410 billion yen.

  • Uniqlo to open largest store in South Korea

    Uniqlo to open largest store in South Korea

    Japanese fashion label Uniqlo will launch its largest store in South Korea on September 13 after reporting strong sales at home and in some overseas markets.

    The 3504sqm store will be located in Jamsil Lotte World Mall.

    “As a local community member, Uniqlo has been striving to show our commitment,” said Kuwahara Takao, co-CEO of Uniqlo.

    “Our new store will provide products and services that enrich everyone’s daily lives and organise various local-friendly activities continuously to better the lives of people in Seoul.”

    Founded in 1949, Uniqlo is owned and operated by Fast Retailing Group and has more than 2000 stores worldwide.

    The brand entered South Korea in 2005 and now has 126 stores in strategic areas.

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  • Uniqlo to open 24th store in Australia in September

    Uniqlo to open 24th store in Australia in September

    Japanese clothing retailer Uniqlo will open a new store in the country at Bondi Junction this September, taking its store count in Australia to 24.

    The new store at Westfield Bondi Junction, which will span 1323sqm, will be the retailer’s ninth store in New South Wales.

    Uniqlo said this store will feature the biggest LED screen installation ever seen in the retailer’s Australian stores and will offer a full line-up of the brand’s LifeWear apparel for men, women, kids, and babies.

    Kensuke Suwa, company chief operating officer, said since they’ve opened their first store in Australia in 2014, they have been able to consistently grow their retail footprint by leveraging their keen understanding of the local consumer and ensuring their products align with their needs.

    “We hope to keep the momentum going and look forward to making the brand even more accessible to Australians,” Suwa said.

    “We are excited by this milestone of bringing LifeWear from Tokyo to a truly iconic location in Australia and are looking forward to becoming a positive part of the Bondi community”.

    This Uniqlo store is its eighth store with the Westfield Group, following Hurstville, Hornsby, Chatswood, Parramatta, Miranda, Chermside, and Carousel.

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  • Greater China and South Korea drive Massive Uniqlo sales

    Greater China and South Korea drive Massive Uniqlo sales

    Heavy discounting necessary to offload winter stock has hit Uniqlo sales. Parent Fast Retailing has struggled with a shortage of popular winter items in the past, and overcompensated last winter by ordering too much inventory ahead of what proved to be an unusually warm season.

    As a result, the Japanese retailer’s first-quarter profit took a hit which in turn impacted of first-half results issued yesterday.

    The company reported declines in both revenue and profit in the first half of the current financial year, with revenue totaling ¥491.3 billion, (US$4.397 billion) down 5 per cent from the previous corresponding period, and operating profit totaling ¥67.7 billion ($606 million), down 23.7 per cent from the previous year. Same-store sales fell 9 per cent, however online sales, which now account for 9.9 per cent of Uniqlo sales in Japan and 20 per cent in China, rose 30.3 per cent.

    The weak first quarter for Uniqlo sales was in part compensated for by a double-digit increase in sales and profit in China, which helped the brand turn in a better-than-expected rise in operating profit to ¥68 billion ($609 million) for the three months to February.

    The company said it now expects an operating profit of ¥260 billion for the financial year through August, compared to its previous forecast of  ¥270 billion in January. The revised outlook would still be a record high and represent a 10 per cent year-on-year rise.

    Uniqlo re-stated its medium-term vision of becoming the world’s number one apparel retailer.

    “In pursuit of this aim, we are focusing our efforts on expanding Uniqlo International and our GU casual fashion brand,” said Tadashi Yanai, chairman, president and CEO of Uniqlo. “We continue to increase Uniqlo store numbers in each country in which we operate, and open global flagship stores and large-format stores in major cities around the world to further develop Uniqlo as a global brand.”

    He said that within the company’s international division, Greater China and Southeast Asia are entering “a new stage of growth as key drivers of operational expansion”.

    Uniqlo Greater China generated double-digit growth in both revenue and profit in the first half of the year despite the dampening effect of the mild winter weather.

    “Within that region, our operation in Mainland China continued to report strong growth in revenue and profit of approximately 20 per cent year on year. Uniqlo South Korea also reported increases in both revenue and profit. Uniqlo Southeast Asia & Oceania generated significant rises in both revenue and profit thanks to strong increases in same-store sales in every single one of the region’s markets.

    Meanwhile, the company plans to open more GU stores in Japan, while expanding the brand’s international presence, primarily in Greater China and South Korea.

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  • Uniqlo hunts personnel for first Vietnam store

    Uniqlo hunts personnel for first Vietnam store

    According to advertisements on Jobstreet.com, a recruitment website, the Japanese corporation is looking for managerial and store level candidates urgently for its first store in Ho Chi Minh City.

    The plan to open its first outlet this fall had also been mentioned in the annual report of Fast Retailing, Uniqlo’s parent company.

    Accordingly, Uniqlo registered a domestic company, under the form of a two-member limited company, in Vietnam last October. Fast Retailing owns 75 percent of the joint venture, while diversified conglomerate Mitsubishi holds the remaining stake.

    The company has a charter capital of $8.8 million, with all of its registered legal representatives: chairman, general director and chief executives being Japanese individuals.

    This is part of Uniqlo’s plan to expand its brand globally. Apart from Vietnam, Uniqlo also expects to open its first stores in Denmark, Italy and India this year. Uniqlo’s arrival will intensify competition between foreign brands like Zara and H&M in Vietnam.

    According to German research firm Statista, Vietnam’s fashion revenue will grow 22.5 percent a year in the 2017-2022 period, reaching $988 million yearly by 2022.

    Vietnam’s revenue from the fashion segment amounted to $486 million in 2017 and $557 million in 2018, and is projected to reach $661 million this year.

    Uniqlo aims to have around 400 outlets in Southeast Asia and Oceania by 2022, generating $2.71 billion in revenue. The brand currently has 827 stores in Japan and 1,241 international stores.

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