Japanese store flops in Britain

JAPANESE clothing chain Uniqlo has dramatically scaled down British expansion plans and is planning to axe a number of senior staff after an ambitious launch flopped.

Fast Retailing, the operator of Uniqlo's discount brand of casual clothing, trumpeted its arrival by opening four stores simultaneously in London last September and declared that it would open 50 within two years.

Fashion commentators heralded Uniqlo as a serious threat to chains such as Next, Marks & Spencer and Gap. But last week, Fast Retailing posted a 36% slump in like-for-like sales worldwide, which is believed to have prompted a swingeing review of the expansion plans.

Since then, merchandising director Stephen Walker and operations director Caroline Lee have left the company abruptly and a further 12 managers are understood to be under threat. Steve Pomfret, the UK chief executive who launched Uniqlo in September, resigned just two months after the first stores opened, and further staff cuts are

expected.

A spokeswoman confirmed the departures of the senior staff. She said: 'Following a restructuring at Fast Retailing, the company is in consultation with a small number of employees regarding proposed changes to their roles. The organisational changes follow the transfer of certain responsibilities and functions to the Tokyo parent company.' Uniqlo, founded by Tadashi Yanai, is a retail phenomenon in Japan, where its low-key, low-cost mix of clothing has helped it become the leading brand for men, women and children. It has more than 500 branches.