Photo/Illutration Uniqlo’s first store in Eastern Europe, located in Warsaw, the capital of Poland, in October 2022 (Shinya Wake)

Fast Retailing Co., the parent company of Uniqlo, reported annual sales surpassing 3 trillion yen ($20 billion) for the first time, reaching the benchmark 40 years after opening its first Uniqlo store in Japan. 

“We have finally qualified to compete as a true global brand,” Tadashi Yanai, chairman and president of Fast Retailing, said at a news conference on Oct. 10. “Now is the perfect time for our next stage of growth.”

The company’s strategy of offering high-quality everyday clothing made with Japanese technology has resonated globally, establishing it as one of the world’s leading fast fashion retailers.

The world’s largest fast fashion retailer is currently Spain-based Inditex, the owner of ZARA, with annual sales of around 5.8 trillion yen.

Yanai has long aimed for Fast Retailing to reach 5 trillion yen in sales within the next few years, with a target of hitting 10 trillion yen further down the road.

Fast Retailing’s growth is driven by its international operations. Uniqlo’s global business has expanded to 1,698 stores, making up 68 percent of the brand’s total locations.

In the fiscal year ending August 2024, global sales and operating profit each accounted for nearly 60 percent of Fast Retailing’s overall totals.

The North American and European markets showed particularly strong growth, with sales increasing 30 to 40 percent year on year and operating profits rising by about 70 percent.

The brand’s growing recognition has boosted sales of popular items such as cashmere sweaters and built-in bra tops.

The driving force behind Uniqlo’s global success has been its unique product development, utilizing technology from its strategic partner, Torey Industries Inc., a Japanese textile giant.

Uniqlo has introduced a range of high-performance products, including Airism, a moisture-wicking fabric underwear; HeatTech, made from a fabric that uses body moisture to trap heat; and Pufftech, a washable and warm outerwear line launched last year.

The company’s commitment to delivering affordable “Lifewear”―the ultimate everyday clothing wear concept―had gained support not only in Japan but also worldwide.

At the news conference, Yanai identified talent development as a key challenge for further growth.

He said the company is focused on nurturing talent capable of managing its expanding overseas stores and will continue to “invest generously” in this area.

However, the question of who will succeed 75-year-old Yanai has lingered for a long time.

In 2002, before Fast Retailing became a holding company, he handed over the presidency to Genichi Tamatsuka, who had previously worked at Asahi Glass Co. (now AGC Inc.). But Yanai returned to the role in 2005 and has remained in the position ever since.

Last fall, Daisuke Tsukagoshi became the president of the company’s subsidiary Uniqlo but no clear successor emerged to take over as head of the holding company.

“I am dedicating much of my time to grooming a successor,” Yanai said.

(This article was written by Ken Miyazaki and Shinya Wake.)

Related News