Fast Retailing, the parent company of Uniqlo, has reported a remarkable annual profit of US $ 3 billion and foresees an 18 per cent growth, driven by strategic expansions in key markets such as China, reported Reuters.
The company plans to open 80 new stores annually in Greater China, including Hong Kong and Taiwan, recognising the growing trend of cost-conscious consumers amidst rising living expenses.
Fast Retailing’s Chief Financial Officer, Takeshi Okazaki, revealed plans to open 20 stores in North America and 10 in Europe.
With 930 Uniqlo outlets in mainland China, surpassing its presence in Japan, the company stands as a significant barometer for retail success in the world’s second-largest economy.
CEO and founder Tadashi Yanai emphasised the evolving consumer priorities, citing a shift towards simplicity and value over luxury in the post-COVID era. Yanai stated, “People are looking to reduce surplus things and frills and live simply in their own way.”
Despite challenges faced by the luxury sector, Fast Retailing’s positive results contrast with the recent struggles of luxury group LVMH.
The company’s success is attributed to its strong post-pandemic recovery in China, where operating profit rose by 28 per cent. Fast Retailing reported an operating profit of 381.1 billion yen (US $ 2.56 billion) in the 12 months through August, marking its second consecutive record-breaking year, following the previous high of 297.3 billion yen.
