UNIQLO Business Strategy

UNIQLO Greater China FY2024 revenue totaled ¥677.0 billion (YoY +9.2%) and operating profit reached ¥104.8 billion (+0.5%). In addition to unseasonable weather and low consumer appetite, business struggled due to marketing and product mixes that were not sufficiently locally tailored. But customer response to UNIQLO remains high, with National Day, Singles Day, and e-commerce sales all expanding. We aim to kickstart a recovery in performance through improved local store management and frameworks that provide products and services tailored to local needs.
We increasingly notice differences in the ability of shopping malls in Mainland China to attract customers. To develop UNIQLO as a vital community presence, we will continue our scrap and build policy of opening profitable stores in premium locations. Annually, we will continue to close roughly 50 stores and open about 50-80 select stores that better enable customers to experience UNIQLO brand value and foster loyalty among local customers.
Meanwhile, to enhance LifeWear branding, we will open flagship stores with standout presence in cities with stellar growth potential. One such event in May 2024 saw the opening of the UNIQLO Wuhan Chuhe Hanjie Street store, a 2,200 m2 flagship in central Wuhan. We teamed up with a university in Wuhan, a city said to have the largest student body in the world, and hosted a recruitment forum and student fashion show. Opening day attracted over 30,000 customers. Over the Labor Day holiday period, the store had our highest sales in Mainland China.
We will capitalize on the strength of our Mainland China operation's vibrant production and consumption to establish product mixes that meet regional climate, lifestyle, and cultural needs. UNIQLO Greater China has already nurtured an excellent talent pool. We are focusing our next-generation training efforts on these personnel and encouraging all members of the Group to think and act like managers. Onwards, to ¥1 trillion sales in FY2028.

UNIQLO Wuhan Chuhe Hanjie Street store

In North America, UNIQLO's popularity is rising, which means new customers and a steady increase in repeat visitors. The region generated significantly higher revenue and profits in FY2024, with revenue totaling ¥217.7 billion (YoY +32.8%) and operating profit reaching ¥34.8 billion (+65.1%). We focused on pinpointing products for strategic marketing--Bra Tops, linen shirts, and wide pants--preparing ample inventory and communicating product information. Previously, most of our customers were of Asian heritage, but today everyone shops with us, approaching our cherished MADE FOR ALL concept.
Expanding the UNIQLO business in the USA and Europe is significant for our global growth. Product development and communications were once centered on Japan, but the more global they are, the bigger the impact. Indeed, products such as Washable Knit Rib Pants, Bra Tops, and Sports Utility Wear, developed based on European and American feedback, have sold well globally.
In FY2025, UNIQLO North America plans to open 25 new large-format, flagship-class, and other stores, pushing our total stores over 100. In 2024, in addition to urban store openings on the continent's east and west coasts, we also expanded into Texas, which we saw as having significant latent demand, ranking third in e-commerce sales after New York and California. Our first store opened in Houston in October 2024, and during the fall we opened four more stores in Houston and Dallas. All generated stronger-than-expected sales, confirming consumer anticipation. Our exceptionally diverse customer base in Texas makes the state an important stepping-stone for expansion into other major cities.
UNIQLO North America is targeting ¥300 billion in sales and a 20% operating profit margin in FY2027, with the possibility of ¥1 trillion sales on the horizon. Market potential is extremely high in both the USA and Canada. We will redouble our efforts to convey our corporate philosophy and LifeWear approach, conducting initiatives and communicating information that will make us a trusted brand in local communities. The most important element here is developing human resources. We will train store managers and salespeople to have an entrepreneurial mindset, and work as a team to fulfill our aim of becoming the best-loved brand in North America.

UNIQLO New York Fifth Avenue store (global flagship store)

UNIQLO Europe* reported significantly higher revenue and profit in FY2024, with revenue rising to ¥276.5 billion (YoY +44.5%) and operating profit totaling ¥46.5 billion (+70.1%). Europe boasts the highest growth rate in the entire Fast Retailing Group. We intend to extend this growth by increasing revenue to ¥500 billion and operating profit margins to 20% in FY2027.
The types of clothing that most of us wear in daily life originated in Europe, and Europeans tend to value good clothing. Our success is driven primarily by a strong resonance between European culture and LifeWear, and a growing affinity for our brand concept. Our products made from natural materials such as cashmere and linen have always been popular, but recently, functional product ranges developed and sold exclusively by UNIQLO, such as HEATTECH, Bra Tops, and AIRism, are also selling well. Our inventory management ensures products can be bought anytime at any store without fear of shortages. People appreciate this as well as our organized sales floors and friendly service. They view UNIQLO as a new type of retailer in the European market.
Flagship stores are key drivers of growth. Opening a landmark UNIQLO store in a prime location in a major city is a great way to show discerning European customers who we are, our clothes-making philosophy, and how we support local communities. In April 2024, we opened our first store in Rome, the UNIQLO Rome Via del Corso store, which boasts a 1,300 ㎡ sales floor on one of the city's busiest streets. The store offers LifeWear to customers in an environment that complements Rome's traditions and elegant architecture.
At less than 0.5%, the UNIQLO share of the ¥70 trillion European apparel market is minuscule. There is plenty of room for growth and fresh markets for us to enter. We plan to open roughly 20 stores a year while actively investing in distribution and human resources.
We are developing a deep talent pool in Europe by training local executives already familiar with the markets, going deeper into each country, and further strengthening local store management. We will strive to become the best-loved, most-trusted brand among European customers.

* Does not include Russia, where UNIQLO operations have been suspended.

UNIQLO Rome Via del Corso store (Italy)