Fast Retailing sees profits tumble
Japanese clothing retailer hit by falling demand
October 17 2003
Fast Retailing saw profits fall by almost 25 per cent in the year to August, hit by increased competition and lower consumer demand on its home territory.
Japan’s leading casualwear retailer, owner of the Uniqlo chain, said weaker spending and competition from rivals copying both its fashions and value positioning led to lower sales and a backlog of stock.
August saw new ranges boost like-for-like sales by 6.7 per cent jump, but sales were down again in September.
Fast Retailing bought Uniqlo into the UK market two years ago with ambitious plans, but has cut back its overseas expansion in order to focus on recovering sales in its home market, where it operates more than 570 stores.
The 21-store UK chain has been cut back to just five, with three stores in China also closed.
