Uniqlo to cut US store openings, suffers low recognition says CFO
By WGSN Insider

Fast Retailing said it would only open five Uniqlo stores in the US in the fiscal year that began on September 1. WGSN Global News Editor Nigel Taylor reports

Oct 09, 2015
/

uniqlo
Like

Japan’s Fast Retailing Co is to put a brake on the runaway success that is Uniqlo, in the US at least.

After revealing a weaker outlook despite record year-end results, the group said late Thursday it would open fewer US stores for its core Uniqlo brand this year after a rapid expansion failed to entice customers.

“The brand… still doesn’t have a lot of recognition in the United States,” admitted CFO Takeshi Okazaki Thursday.

Fast Retailing said it would only open five Uniqlo stores in the US in the fiscal year that began on September 1, after opening just over three times as many stores last year.

Impairment losses worth ¥16.1bn ($135m), related to some of its US Uniqlo stores, as well as its more upscale J Brand denim label and other brands, contributed to the company missing its own forecast for a ¥200bn operating profit for 2014/15.

“The [US losses] were partly due to the rapid expansion with 17 new stores opening in the year,” Okazaki said.

Fast Retailing had set an ambitious goal of opening 100 Uniqlo stores in the US over the next few years.

As of the fiscal year that just ended, it had a total of 42 stores there, but the brand has struggled to compete in a crowded market place.

STAY UP TO DATE: You want the need-to-know news, right? Our journalists deliver a daily curation of the most important industry happenings. Sound good? Join WGSN.


Subscribe to WGSN

blog_ad2
Big data meets consumer insights. Experience WGSN.

Related stories

Gilt.com Will Open 'Gilt at Sea' Retail Pop-Up For The Holidays

1 photo
Designers Maxwell Osborne and Dao-Yi Chow out of DKNY

Boohoo and Nasty Gal
Boohoo and Nasty Gal = the perfect retail match?

3 photos
eBay's latest retail pop-up tracks shoppers emotions on camera

Why personalised food gifts are on the rise this holiday season