Uniqlo set to overtake H&M as world's second-largest apparel retailer
Uniqlo parent Fast Retailing is expected to overtake H&M as the world’s second-largest apparel retailer while stepping up expansion in Southeast Asia.
Fast Retailing, the parent company of Uniqlo, is on track to surpass H&M as the world's second-largest apparel retailer. The company recently reported a 17% increase in annual revenue, reaching a record 3.96 trillion yen (US$25 billion). Analysts believe that Uniqlo's sales could exceed those of H&M's parent company, Hennes & Mauritz AB, which is expected to report revenue of 222.7 billion kronor ($22.3 billion) for the fiscal year ending in November.
Uniqlo's success marks a transformation from a low-cost Japanese casualwear chain to an international brand focusing on functional clothing for all seasons. Fast Retailing's founder and CEO, Tadashi Yanai, the second-richest man in Japan, aims to more than double annual sales to meet his long-term target and create a global apparel powerhouse.
Yanai emphasized that resisting fast fashion trends and focusing on functional, high-quality everyday clothing has helped Uniqlo establish a brand that is difficult to replicate. The company's same-store sales in Japan grew by 5.1% year-over-year, driven by demand for products like Ultra Stretch Pants and UV Protection items, alongside trend-driven offerings.
Overseas operations accounted for the main source of growth, with Uniqlo's international business posting record revenue and profit. In the past year, Fast Retailing opened and upgraded U.S. stores, including new locations in New York and Chicago, and expanded its presence in North America and Europe. Yanai outlined ambitious plans for expansion in Southeast Asia, Australia, and India in the future.
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