Fast Retailing Co‘s Uniqlo announced that its brand sales have increased the most in four years in Japan as summer clothes became in demand in the country’s record-breaking summer heatwave. Asia’s largest clothing retailer experienced a 29% increase in August same-store sales at Uniqlo Japan outlets.
This was the retailer‘s biggest increase in sales since October 29, when their monthly sales experienced 36% gains, as per the data found in their website. Not only did they expand domestically as they opened more stores in locations like Tokyo’s upscale Ginza district, the retailer also broadened outside their home market by opening stores in international markets. As of February, they already have 2,327 stores worldwide, with 847 in Japan and 359 outside the country. These are necessary moves as they are targeting $50 billion in sales by 2020. They are also aiming to change their utilitarian image domestically into something more fashionable.
Mikihiko Yamato, deputy head of research at JI Asia in Tokyo, observed that Uniqlo made a good strategy in encouraging people to buy their summer wear as temperatures continued to rise, instead of preparing for their autumn campaign, as most retailers usually do by this time. Yamato also said it shows that Uniqlo has the power to gain sales. They have also started to increase the discounts offered locally, as consumers become more price-sensitive in these times.
[ via Bloomberg ]