Uniqlo operator eyes boosting global operations, with India in sight

TOKYO, May 17 Kyodo -
Fast Retailing Co., the operator of the popular Uniqlo casual clothing chain,
aims to continue expanding its global operations with an eye to opening shops
in emerging markets such as India and Latin America, while boosting its
domestic outlets in Japan's department stores, its President Tadashi Yanai said
Monday.
''We would like to open stores (in those markets) within 10 years, although
nothing has been decided,'' Yanai said, adding that Uniqlo outlets will also
break into the German and Spanish markets soon.
In an interview with Kyodo News at the company's Tokyo office, Yanai said he
believes the company can achieve its earlier-announced target of raising its
group sales about seven-fold to 5 trillion yen by 2020 on growing sales in Asia
including China.
Yanai indicated the potential of Uniqlo's reach, saying there is a big
potential global market for Uniqlo given that there are many countries that the
company has not yet entered.
Fast Retailing, which has been performing well among Japanese retailers, has
just opened its fourth global flagship outlet in Shanghai, following those in
New York, London and Paris.
Yanai said he has so far received ''good feedback'' following the opening of
the three-story Uniqlo store in Shanghai's top shopping district, which the
Japanese retailer described as its largest global outlet, with a total floor
space of roughly 3,600 square meters, and expressed hope it will ''serve as a
base for Uniqlo to reach from Shanghai to the rest of Asia and the world.''
''We are not only focusing on China but the whole of Asia,'' he said.
With its eyes increasingly fixed toward markets abroad, Yanai hinted that
overseas listings of the company's shares could take place soon on Asian
bourses such as Hong Kong and Singapore, but he did not rule out listings in
London and New York.
In parallel, Fast Retailing will beef up its domestic operations, with the Fast
Retailing chief looking at possibly opening Uniqlo shops in department stores
at 100 locations including Tokyo, the Kansai region surrounding Osaka, and
major regional cities.
''I believe setting up Uniqlo outlets in department stores, which occupy large
spaces in the center of major cities in Japan, is important,'' he said.
Uniqlo currently operates department store outlets in eight locations in Japan.
Fast Retailing has seen strong sales of core products such as T-shirts as well
as popular items including Heat Tech thermal innerwear and Bra Top camisoles.
It has also recently boosted its brand image through a tie-up with German
luxury fashion designer Jil Sander.
Although March and April sales data were discouraging, declining from the
previous year for two months in a row, Fast Retailing remains a bright spot in
Japan's retail industry, having logged a record operating profit and sales for
the first half of its current business year ending in August.
Yanai shrugged off the latest results, attributing them to poor marketing
strategies which can be remedied.
==Kyodo