Japanese lifewear maker Uniqlo has announced the closure of 9 of its stores in Korea due to the ongoing trade tussle between South Korea and Japan.
The falling demand amidst the pandemic and the rise of online shopping has pushed the cause for the closure of these outlets.
However, the company has categorically stated that these outlets will be the last to be closed in the country and with no more shutdowns planned Uniqlo will introduce a new store in September.
These 9 stores are in addition to previously shut 13 retail outlets last year, taking the number up to 166.
The stores to be closed include the Gangnam and Soecho outlets in the nation’s capital Seoul.
The Japanese Government had imposed certain export restrictions on industrial materials bound for Seoul, sparking outrage in Korean customers.
They have responded by a boycott of all Japanese brands and Uniqlo is suffering the same fate as others in the country, contributing to the already weakened consumer shopping sentiment during the outbreak.
Despite a rebound in the month of June, Uniqlo had lowered its forecast of operating profit for the whole year by 50 per cent to US $ 1.21 billion. The company had experienced a loss of 4 billion yen in March-May quarter.