Uniqlo plans to open 20 more stores in China between September and October this year – including its first store in Sanya.
This came after announcements in early March when Fast Retailing, the parent company of the Japanese brand, announced that it up to 50 “unprofitable” stores in China. Uniqlo currently operates over 900 directly managed stores across mainland China. The company plans to open 50 stores in the country annually – which would result in a net profit of 30 stores.
The reason for this could be China’s reopening after the Covid pandemic: the increase in domestic travel and the popularity of emerging destinations such as Hainan, but also the growth of smaller-category cities across the country.
China’s retail sales rose 2.7% in July from the same period last year, an improvement from June’s 2% rise and slightly beating analysts’ expectations. While some sectors such as domestic tourism recovered, the unemployment rate rose to 5.2% in July from 5% in June. However, this rate only applies to urban areas, and the youth unemployment rate was 13.2% in June. July figures have yet to be released.
As for Uniqlo, on August 16, the Japanese brand held its Fall/Winter 2024 product launch in Shanghai. This season’s collection, themed “Timeless Tones,” is inspired by the eclectic charm of Edinburgh and the modern color aesthetic of the Nordic city of Stockholm.
At the event, Uniqlo announced its further investments in the Chinese market with the aim of improving its “individual store management”.“-Strategy.
Recently, the brand was praised on Chinese social media for its immaculate, moisture-wicking table tennis uniforms designed for the Swedish team at the Olympics, while Chinese players were clad in “sweaty-looking” outfits from Chinese sports brand Li-Ning.
