Uniqlo: March sales down, open for business in Russia

April 5, 2010
By Ken Worsley

Shares in Fast Retailing, the operator of Uniqlo, fell by 1,770 yen on Monday to 14,920 in reaction to the retail firm announcing on Friday that it had posted a 16.4% drop in same-store sales for March. Uniqlo also saw a 10.7% decline in customer numbers while spending per customer fell 6.4%.

Despite the drop, Uniqlo’s same-store sales remained up 9.9% in year-to-date terms, with the financial year ending August 31. Fast Retailing itself has kept busy over the past few months, moving its corporate headquarters into the Tokyo Midtown complex in March and opening its first Uniqlo location in Russia last Friday. The firm’s press release on the opening makes its overseas expansion goals very clear:

UNIQLO is pressing ahead with its global expansion with the opening of global flagship stores in Paris, London and New York and the opening of multiple stores in China and South Korea. At the end February 2010, UNIQLO had a total number of 918 stores worldwide, 125 of which were stores located outside of Japan. UNIQLO believes the carving of new markets outside of Japan is vital to ensure expansive future growth.

On Saturday, the Nikkei reported that about 700 people lined up outside the new Uniqlo in Moscow for its opening. The paper also noted that the cheapest pair of jeans at the new shop went for 599 rubles, or about 1,900 yen. The Nikkei commented that prices are slightly higher in Japan, but stopped short of accusing Uniqlo of exporting deflation.

Filed Under Business, Retail