Trouble at Uniqlo?

Good morning everyone,

It's going to be another nice fall day out there, make sure you enjoy it because we may see some rain tomorrow evening and it'll continue on Monday. Then, it should clear up and we can expect the nice fall weather to be back on Tuesday. In fact, it's looking a bit warmer next week than it has been.

Fast Retailing Co. Chairman Tadashi Yanai caved in to reality and scrapped his 8-year-old target for Uniqlo to hit ¥5 trillion ($48 billion) in annual sales by fiscal year 2020. The billionaire, who wants to make Fast Retailing the world’s largest seller of clothing, on Thursday slashed that revenue goal for the fiscal period ending August 2021 by 40 percent as the company reported annual sales and net income forecasts that missed estimates.

The clothing retailer has struggled with weak demand in Japan, the negative impact of a stronger yen on overseas sales, and rising competition from e-commerce operators-not to mention his failed plan to increase prices. “It will take a bit longer to achieve ¥5 trillion,” Yanai, Japan’s richest person, said in a briefing in Tokyo to discuss earnings on Thursday.

Sales did grow this year though. They gained 6.2 percent to a record ¥1.79 trillion. After sales slumped in the first half, the company shifted its strategy back to offering regular low prices rather than big discounts on selected items. Earlier this year, Yanai vowed to offer the “lowest possible price” at Uniqlo stores after efforts to raise quality along with prices failed to drive up earnings. maybe there isn't really any big 'trouble' at Uniqlo-they are still making money after all, but I couldn't think of another sue me! It's 5:16 in the morning and I'm still half-asleep...Zzzz...

The one surprising thing about the sales at Uniqlo is that online sales only account for 5% of the total sales in Japan. I wonder why that is...obviously here in Hiroshima it's easy to pop into a Uniqlo to pick stuff up. The stores are everywhere! We've got 8 of them. But then there are only 10 more in the rest of the prefecture-don't those people who live out in the boonies use the net to do their shopping? Or maybe they like to have an excuse to come into the city on the weekends. I know that's what we always did when I was a kid...well, not really a 'city'...more like a big town...ok, so maybe it was just a little town, but it felt big when I was a kid! Ha ha!

Have a great day!

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