In Addition To Fast Fashion UNIQLO, Japanese Retailers Are Almost In Trouble.

Japan

We are suffering from the low purchasing power of our consumers, according to Japanese media.

Besides, Japanese retailers are almost in trouble.

The sales volume of the three Yue Yi Dan Dan Department fell by 6.7% in May, and the turnover in Tokyo only dropped 8.7%, which was a third month decline in turnover in Tokyo.

Takashimaya, a large Japanese department store chain, said its 13 Takashimaya brand department stores were down 1.9%.

However, UNIQLO won a high turnover during the Japanese golden week holiday in May. The fast fashion group of the fast fashion company said its turnover in Japan's UNIQLO stores increased by 5.9%, mainly due to strong sales during the good weather and golden week holidays. At present, UNIQLO has more than 800 stores in Japan.

However, the challenge of fashion retailing is still grim. Since its disappointing earnings report in the first half of the fiscal year, XXX has planned to promote its business through price cuts.

In April, the chairman and CEO Liu Jing Zheng told the Japanese media that UNIQLO would return to the simple pricing mechanism because the price increase in the past two years has proved to be a mistake.

Ryui Masa said at the time: "consumers do not agree that new products are equal to high prices. The environment of fashion retailing is now very difficult. It is a mistake for companies to raise prices in this environment.

There is evidence that consumer confidence is worse than we think. "

In early April, the company lowered its annual profit guidance for the second time, which is another adjustment after the first quarter of January.

At present, XXX expects net profit to fall by 45.5% to 60 billion yen (544 million 430 thousand US dollars) as of August 31st this year.

In January, the company said it expects net profit for the year to be flat at 110 billion yen ($998 million 120 thousand).

The company said its operating profit is expected to fall by 27% to 120 billion yen (1 billion 90 million US dollars).

It was lower than the previous yen of 180 billion yen (US $1 billion 630 million).

At the same time, the company expects to remain unchanged throughout the year.

The company expects its turnover to grow by 7% to 1 trillion and 800 billion yen (16 billion 330 million US dollars).