Economy

Uniqlo’s Fashion Sales Soar, But Store Openings Take a Bite

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Wardrobe essentials like basic tees, socks and boxer briefs flew off the shelves at Japanese fast fashion giant Uniqlo, which opened nearly 10 new stores over the past year as budget-conscious Australians chased value for money in their purchases.

Uniqlo’s Australian business saw sales revenue lift 35 per cent to $570.2 million for the 12 months to August 31. However, this was offset by hefty increases in wages and other expenses, which saw net profit come to $31.7 million, a 1 per cent dip on the year before.

Japanese retailer Uniqlo expanded its store footprint in the 2023 financial year.

Uniqlo Australia chief executive Fuminori Adachi said that growing in the Australian market was a priority for the brand, which is why it invested in marketing, new store openings and design collaborations in the 2023 financial year.

“Our essential wardrobe items, which incorporate technology for ultimate comfort and functionality, continues to resonate with Australians, and we’ve seen popularity with some of our key products and categories, such as our AIRism range, premium linen, high-quality core T-shirts, 50 colourful socks and our boxer briefs,” said Adachi.

Uniqlo’s national store footprint is now 36, after opening new stores in Westpoint Blacktown, Erina Fair, Lakeside Joondalup, Pacific Epping, Bankstown Central, Macarthur Square and Myer Centre Rundle Mall, its first store in South Australia.

“The store openings were very exciting for me to see in Australia, and we felt so welcomed by customers in each local community,” the CEO said.

Uniqlo T-shirts displayed in Tokyo’s Ginza district. The Japanese brand is renowned for its basics.

Uniqlo T-shirts displayed in Tokyo’s Ginza district. The Japanese brand is renowned for its basics.Credit: Noriko Hayashi/Bloomberg

While sales increased, Uniqlo’s wages bill jumped 56 per cent to more than $127.7 million. Marketing costs lifted 41 per cent to $12.3 million, admin expenses climbed 35.9 per cent to almost $46.9 million, and financing costs more than doubled to $7.6 million.

“We are focused on controlling costs in order to pass on the best value to our customers. Being a Japanese company, we value long-term partnerships with our suppliers and work closely with them in terms of cost optimisation,” said Adachi.

(The following story may or may not have been edited by NEUSCORP.COM and was generated automatically from a Syndicated Feed. NEUSCORP.COM also bears no responsibility or liability for the content.)

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