UNIQLO Top Pressure Will Continue To Expand The Scale Of Chinese Stores

The collapse of China's stock market in the past more than 10 trading days has aggravated people's concerns about the economic situation.

Recently, Fast Retailing Co Ltd said it would not be affected by China's stock market and continue to expand its fast fashion brand.

(Uniqlo) the scale of stores in China.

According to Reuters, China is the largest overseas market of UNIQLO, and its fast selling company's ultimate goal is to surpass its rival Inditex SA in 2020.

Parent company), Sweden Hennes & Mauritz AB

And the United States

Inc, becoming the world's largest

Retailer.

Although the growth rate has slowed down, Oka Ken, chief financial officer of fast marketing company, said that so far, the company's strategy in China has not changed.

"From the current situation, our business has not been affected."

In the third quarter of this fiscal year, its operating profit reached 39 billion 200 million yen (US $323 million), an increase of 20% compared with the same period last year.

Ryui Masa, chief executive of the company, said that UNIQLO aims to have 1000 stores in the Greater China region in the past five years, exceeding the number of stores in the Japanese market and eventually reaching 3000.

As of May 31st, UNIQLO had 442 stores in mainland China, Hongkong and Taiwan.

UNIQLO's largest overseas market, China and the two largest overseas market, exceeded the company's expectations.

Japan is still the largest market, benefiting from the best selling of HeatTech and AIRism series. In the first 9 months of May, the same store sales in the Japanese market increased by 8.8% over the same period last year.

But same store sales plummeted 11.7% in June, the biggest drop since October 2013.

The company expects fourth quarter sales to remain under pressure.

For the downturn in June, the reason why Gang believes that the hot weather made consumers stay at home, thus reducing consumption activities.

In Japan, the same store sales growth in the fiscal year is still 5.5%.

Fast marketing company raised its overall target three months ago. It is estimated that the target will remain unchanged.

The company expects that in the current fiscal year (up to August 31st), its operating profit will reach 200 billion yen and sales revenue will reach 1 trillion and 650 billion yen.