Uniqlo to cut back UK operation
Fast Retailing to close 16 stores
March 7 2003
Japanese operator Fast Retailing is to shut 16 of its 21 Uniqlo stores in the UK as it attempts to fend off falling sales in its core home market.
The clothing retailer has seen sales at Uniqlo stores tumble in Japan as consumers cut back on spending. The company has decided to cut back on overseas operations to channel funds into supporting a recovery in Japan, where it operates 574 stores offering basic, low-priced casualwear. Three stores in Shanghai will also close.
The five UK Uniqlo stores which are staying open are all in the London area. Uniqlo arrived in the UK with a big PR splash 18 months ago, and rapidly expanded. Bernie Foster, former Body Shop UK managing director, was appointed chief operating officer of the UK buisness last October.
However, the major investment in overseas expansion coincided with problems in the Japanese economy. Year-on-year sales to last August fell by 28.6 per cent, the first decline in a decade.
Founder Tadashi Yanaii stepped down as president in November, replaced by Genichi Tamatsuka, who set up the UK business.
The company said it plans to take the scaled back UK business into profit in the 2002/03 financial year.
