See Muji U.S. Branch Bankruptcy, UNIQLO Revenue Growth Two Days

According to foreign media reports, the U.S. branch of Japanese retailer Muji has applied for bankruptcy protection in a Delaware court. The company's assets and liabilities listed in the bankruptcy filing range from $50 million to $100 million. MUJI, the parent company of Muji, said in a statement that its U.S. branch filed for bankruptcy because of the closure of stores during the outbreak. MUJI's U.S. subsidiary has joined more than 110 companies that have filed for bankruptcy in the United States this year.

MUJI's US expansion plan, which was restarted in 2017, contributed only about 2.5% of the group's total revenue in the last fiscal year. The region has lost money for three consecutive fiscal years, with a loss of about $10 million in the previous fiscal year.

Accept the new crown "assessment" there are many and Muji like, relying on offline retail FMCG. As we all know that the offline economy is nearly cut off, the giants have launched self-help strategies, such as transferring online, launching products related to epidemic prevention, and temporarily closing stores to save money. However, from the current situation of each company, the effect gap is not small.

Close shop, close down, legal dispute, fast disappear tycoon on the verge of bankruptcy

In mid June, INDITEX, Zara's parent company, said it planned to permanently close its 1000 to 1200 stores, equivalent to 13% to 16% of its global stores. The company said the planned closures would affect its Zara, Massimo dutti and pull & Bear brands, mainly smaller stores.

And more actively turn to online sales, in order to adapt to the changes in people's consumption habits after the epidemic. Considering the changes in consumer behavior after the outbreak, the company plans to focus its resources on the digital field and strive to make online sales account for a quarter of total sales by 2022.

INDITEX, one of the world's largest fashion retailers, was hit hard by the outbreak, with sales falling 44% in the first quarter to the end of April to 3.3 billion euros, with a net loss of 409 million euros. Nearly a quarter of its stores were still closed as of June 8.

The latest data show that the U.S. epidemic is still severe, with more than 3 million people diagnosed. Under this background, offline retail is bound to bear the brunt.

According to the data, ascenda and Brooks brothers, the two largest clothing retail giants in the United States, have all gone bankrupt during the epidemic.

The former has a number of women's clothing brands, such as Ann Taylor and lane Bryant, which have more than 3000 stores, and now have to close at least 1200; the latter is more than 100 years old, and many former US presidents, such as Lincoln and Roosevelt, are fans of the brand. They once provided clothing for more than 40 presidents, which is known as the "presidential royal clothes" brand. Victoria's secret, the famous underwear brand, has also declared bankruptcy.

Gap, as the largest clothing company in the United States, has shown a crisis for a long time. Westfield, a shopping mall giant, sued gap yesterday for defaulting on $10m in rents for opening physical stores across the US.

Prior to that, gap parent company Gap announced that in the first quarter of 2020 (February 1 to May 2, 2020), sales fell 43.1% to 2.107 billion US dollars (about 14.902 billion yuan); net profit loss was 932 million dollars (about 6.6 billion yuan), and the net profit of the same period of last year was 227 million dollars (about 1.605 billion yuan).

In China, lashabel, known as the "Chinese version of Zara", closed 4400 + physical stores last year, and its revenue continued to decline sharply in the first quarter of this year, with a year-on-year decrease of 57.75%. The share price of its A-share has fallen all the way from the highest point of listing of 30.32 to around 2.7 yuan now. The share price of Hong Kong stock has been suppressed below HK $1 for half a year in a row, and the listed company has been St.

Why is UNIQLO the first to recover its vitality?

A positive case is UNIQLO.

UNIQLO group, the parent company of world-famous fast fashion brand, recently released its financial report. As of the end of May, the group had a net loss of 9.82 billion yen (about 640 million yuan). UNIQLO's business revenue decreased by 36% in the current period, and its operating profit plummeted by 74%. UNIQLO accounted for more than 80% of the group's business. Since the end of March, China's epidemic situation has gradually improved, which has also led to the recovery of UNIQLO's sales volume. More than 75% of UNIQLO's 2200 stores are in China, Japan and the two countries.

UNIQLO is Asia's largest fashion retailer, the world's third largest retailer after Zara owners INDITEX and H & M. According to the data, UNIQLO achieved double growth in revenue and net profit in May, and its performance rebounded significantly, mainly due to the recovery of China's market. UNIQLO said its recovery in China was faster than previously expected, suggesting that it may have weathered the crisis better than many of its global peers.

However, North America, where the epidemic is still serious, is suffering from increasing losses, with more than 80% of its stores not operating. European countries such as the United Kingdom, France, Russia, the situation is not optimistic, revenue fell.

UNIQLO has temporarily stabilized its declining trend with the recovery of consumption in masks and greater China, but the United States, far away from the other side of the ocean, is not so lucky.

UNIQLO will spend more and more time on fashion, instead of focusing on everyday fashion.

Fast Retailing is also heavily dependent on Asian economies, especially China, where UNIQLO's home furnishings and occasionally popular merchandise mix are hugely popular.

It is worth noting that only 51 of the 2260 stores in the world are in the United States. A relevant spokesman said the company did not decide to withdraw completely from the U.S. market, but would close its underperforming stores as appropriate.

It has made great efforts to gain market share in China. It has been questioned and criticized for this strategy before. But now it seems that attaching importance to the Chinese market makes UNIQLO more resistant to the new crown than any other FMCG.

From the self-help strategy of FMCG, we can see that luck is a very important factor. At the same time, such as Zara, Muji, UNIQLO, etc., accelerate their online sales efforts and investment during the epidemic period, in order to maintain sales and enhance the ability to resist risks. Gap and Kanye yezy reached a 10-year co branding cooperation. Once the news was disclosed, gap's share price rose by 42%, but this cooperation was not favored by fans, and the stock price fell back quickly.

When the epidemic situation is coming to an end. From the present point of view, each FMCG has its own long-term problems to be solved. As a sudden factor, the new crown has intensified the contradiction. Whoever can face up to the contradiction and prescribe the right medicine to the case or even take a biased sword, he or she may kill a way out.