Uniqlo aiming for 200 UK stores

DESPITE battling sagging profits and vicious competition in its home market in Japan, the Uniqlo fashion stores chain is to triple its investment in Britain and push ahead with an aggressive expansion programme.

Uniqlo's parent company, Fast Retailing, aims to raise its capital in the UK from £10m to £30m and is standing by plans to open up to 50 stores in Britain within three years.

Although the company was reported to have slashed its expansion plans in Britain, Fast Retailing now says it will continue to open new stores and its target is eventually to have around 200 casual clothes shops here.

Uniqlo, which launched its first outlet in September last year, now has 12 in Britain following the opening of three new stores in the Midlands in March. The company might even be prepared make acquisitions to speed up the expansion, president Tadashi Yanai told reporters in Japan last month, although no moves are planned for at least three years.

While Uniqlo claims demand in Britain remains strong, it admits there has been a slowdown after the initial publicity fanfare and analysts in Tokyo estimate that the UK operations will lose up to £16.5m in their first year.