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Report: Uniqlo's 17 US Stores Aren't Profitable

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A Uniqlo store in New York. Photo by Brian Harkin for <a href="http://ny.racked.com/archives/2013/07/11/uniqlo_will_open_in_brooklyn_and_staten_island.php">Racked NY</a>.
A Uniqlo store in New York. Photo by Brian Harkin for Racked NY.

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Fast Company, Uniqlo's parent brand, broke ¥1 trillion (about $9.8 billion) in sales in 2013. Retail analysis firm JapanConsuming takes this arbitrary benchmark as an opportunity to look at how the chain is faring overseas and its next steps for expansion.

Uniqlo has completely saturated its home country with stores. Of its more than a thousand locations worldwide, 800 or so are in Japan. The chain has been transparent about its plans to expand in the US. But, as JapanConsuming explains, Uniqlo has to better its American offerings to succeed against retailers like Zara and Forever21. "Although Uniqlo is planning to open dozens of stores per year in the US, in the American market the company faces levels of competition that will require a more robust merchandise model," they explain. "Thus far, its 17 US stores are still not making a profit."

Uniqlo execs plan to fix this with new merchandise created "specifically for the US market."
· Uniqlo's Main Road is Overseas [BoF]
· Uniqlo Confirms Five New US Store Openings This Spring [Racked]