UNIQLO, Levis And Many Other Brands Temporarily Shut Down Stores In Hubei.

In February 4th, according to the Nikkei news agency, Japan's fast selling group, the parent company of UNIQLO, revealed that the number of stores suspended in China has reached 270 by February 3rd as affected by the coronavirus epidemic. It is reported that the temporary shops are mainly located in Hubei Province, and the time for reopening will be determined.

According to UNIQLO official told the Beijing daily news reporter, the temporary closure of shops are mostly in Hubei and surrounding areas, many of which are temporarily closed due to commercial facilities. "Except for the Hubei province where Wuhan is located, it is expected that most of the areas will resume normal work in February 10th." UNIQLO official said.

Public data show that as of the end of December 2019, UNIQLO has about 750 stores in China, which means nearly 4 stores are temporarily closed. The importance of the Chinese market for UNIQLO is self-evident. In the heyday of the past 2019, UNIQLO once became the second largest market after Japan. In 2019, the sales volume of the double eleven period was the first. Some analysts believe that this move will make UNIQLO performance "cold".

According to the 2020 fiscal year Q1 earnings report released by UNIQLO parent company in January 10th, its sales fell 3.3% to 623 billion 400 million yen in the three months ended November 30th, and operating profit dropped 12.4% to 91 billion 700 million yen.

Meanwhile, in the reporting period, the sales of UNIQLO Japan fell 5.32% to 233 billion yen compared with the same period last year, while overseas income fell 3.6% to 280 billion 748 million yen compared with the same period last year, the biggest decline in ten years, and the operating profit dropped by 28% to 37 billion 800 million yen, which also declined in the first quarter since 2016.

Under the epidemic, many brands began to postpone the practice. Levi's, the US denim clothing brand, said publicly last week that the group has closed about half of China's stores, including the Levi's brand's largest flagship store in Wuhan, due to the outbreak of new crown pneumonia. Singapore leather accessories brand CHARLES & KEITH ordered all stores in Hubei to be suspended. The official announcement will be made later in the specific business hours. The fast fashion giant H&M's 13 store in Wuhan, China has also been temporarily closed. Gap, a US apparel retailer, announced that the group decided to temporarily close its headquarters and factories. Its stores will adjust their business hours as needed, and some stores will be temporarily open. The group also emphasized that the closure of factories would not have an impact on the supply chain of the group.

"The brand line is more affected, the next step will be more overweight lines," a brand director who declined to be named told reporters. "In recent years, online and offline integration, offline stores often assume the display and experience function, for online channels to occupy a larger brand, logistics and other later return to normal, the impact is relatively controllable, but regional losses will be inevitable." The brand director said.