Japanese parent to strengthen British operations
Uniqlo is on the hunt for an acquisition or alliance as it steps up its efforts to create a major foothold in the UK market.

The Japanese fashion retailer, owned by parent Fast Retailing, is to establish flagship stores in London and New York within the next 12 months, according to chief executive officer Tadashi Yanai. It opened stores in both markets last autumn.

It is the retailer's second attempt at the UK market, after an ambitious launch in 2001 when the company built to 21 stores, only to drop back down to eight as sales failed to match the hype.

In order to support the operations, Yanai said Uniqlo would establish manufacturing in both the EU and US to bring products to market more quickly. The majority of souring is from China at the moment.

Earlier this month, Fast Retailing reported gross profit up 1.9 per cent year on year to 47.9 per cent. Its UK operations generated a profit in the first quarter 'roughly in line with forecasts', the company said. However, the company admitted that sales and profits in the US 'fell short of our expectations'.

Fast Retailing also owns French group Comptoir des Cotonniers, which has one London store.

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