Does Physical Retailing Really Fail?

With the rapid development of shopping websites and the loss of physical retail, the Japanese apparel retail giant -

parent company

But he keeps opening shop.

UNIQLO said it will open stores in the mainland of China in the future and expects to increase 100 stores a year.

According to the world clothing and shoe net, in the 2017 fiscal year (from the beginning of September 2016 to the end of August 2017), fast sales performance rose sharply, and net profit was equivalent to RMB 20 billion.

The sharp increase in gross margin and impairment loss in sales is the main reason for the rapid increase in short-term sales.

But large-scale expansion of the number of stores is the core factor for sustained growth of fast sales performance.

According to Xun, the number of global stores will expand to more than 3500 in fiscal year 2018.

In addition, its performance in mainland Japan has also picked up.

In fiscal year 2017, UNIQLO's revenue in Japan increased, and net profit declines narrowed sharply compared with the previous fiscal year.

In fact, according to Japanese official figures, business sales in Japan have been rising for the 6 consecutive month as of the end of August.

When the entity store is in a difficult situation, the rapid expansion of fast selling is attracting attention.

UNIQLO parent, Xun, recently announced its performance announcement. In fiscal year 2017 (from the beginning of September 2016 to the end of August 2017), its total revenue was 1 trillion and 865 billion 386 million yen, up 4.22% compared with the same period last year, with a net profit of 119 billion 280 million yen (about 20 billion 200 million RMB), up 148.23% over the same period last year.

In fact, in the 2017 fiscal year, fast sales revenue and net profit all set a record high.

The sharp rise in net profit from net sales is mainly due to the rise in operating profits.

In the 2017 fiscal year, fast sales revenue growth was not obvious, but operating profit rose by 38.6%.

In the fiscal year, the gross profit margin of fast selling increased by 0.4 percentage points over the previous fiscal year, reaching 48.83%.

Xun said that it avoided relying on price promotions to substantially improve gross margins.

In addition, under the implementation of cost reduction measures, the ratio of fast sales, general and administrative expenses to revenue also dropped by 0.4 percentage points.

In addition to the rise in operating profits, a substantial reduction in impairment losses is also an important reason for the rapid rise in net profit.

In the 2017 fiscal year, the fast sale impairment loss was 9 billion 324 million yen, up from 22 billion 397 million yen in the same period last year.

However, under the sale of fast selling

Brand performance is still in the doldrums.

In the 2017 fiscal year, GU's brand operating profit was 13 billion 500 million yen, down 39% from a year ago.

In addition, the brand's same store sales also fell by 3% over the same period last year.

Rapid profit growth in the 2018 fiscal year is related to the strong performance of UNIQLO overseas.

In the 2017 fiscal year, overseas UNIQLO revenue was 708 billion 100 million yen, up 8.1% over the same period last year, operating profit of 73 billion 100 million yen, up 95.4% over the same period last year.

According to Xun, the promotional activities of UNIQLO's Festival holidays in mainland China successfully attracted customers. Compared with the previous year, sales continued to maintain growth momentum, and the profits in the Greater China region increased significantly.

In addition, UNIQLO was also strong in Southeast Asia and Oceania, while operating losses in the US decreased by nearly half compared with the same period last year.

As the performance continues to improve, UNIQLO stores are expanding.

In fiscal year 2017, UNIQLO opened 20 new stores in Russia and France.

The Chinese market has also been included in the expansion plan.

In overseas UNIQLO stores, the number of stores in the mainland of China accounts for more than half.

Recently, UNIQLO's chief executive of Greater China said that UNIQLO currently has 645 outlets in the mainland, and it expects to increase 100 stores annually.

According to the financial report, as of the end of February this year, the number of overseas stores in UNIQLO was 1029, an increase of 139 compared with the same period last year.

Over the past five years, the number of overseas stores in UNIQLO has increased by 737, an increase of 2.52 times.

According to Xun, it expects that by the end of August 2018, the number of global stores will expand to 3502, including 1246 overseas UNIQLO stores, 1425 global brand stores and 831 Japanese UNIQLO stores.

In the 2016 fiscal year, UNIQLO had adopted a strategy of reducing prices in Japan.

But the strategy has not been successful.

In the financial year, profit fell sharply due to the fall in the performance of local UNIQLO.

But in the 2017 fiscal year, Japan's UNIQLO revenue reached 810 billion 700 million yen, up 1.4% over the same period last year, operating profit of 95 billion 900 million yen, down 6.4% from the same period last year.

In the 2016 fiscal year, its operating profit dropped by 12.65%.

In addition, Japan's UNIQLO store sales increased by 1.1 percentage points over the same period last year.

The warmer performance of UNIQLO in Japan is a microcosm of the overall growth of the Japanese retail industry.

According to Japan's Ministry of industry and commerce, business sales in Japan were 36 trillion and 760 billion yen in August 2017, up 3.51% over the same period last year.

This is a positive growth in Japanese business sales for 6 consecutive months since March 2017.

The last time it happened was five years ago.

In the context of accelerated overseas expansion and Japan's local performance, Xun said in its 2018 financial year performance forecast that its various departments will record double growth in revenue and profit in the 2008 fiscal year.

Can physical retail really fail? The expansion of UNIQLO is probably a worthy reference.

More interesting reports, please pay attention to the world clothing shoes and hats net.