The parent company of Japanese fast fashion retailer Uniqlo, Fast Retailing has posted a UK loss of £9.74m for the year to August 31, 2011 but will still look to expand in the UK.
According to its annual results statement the losses are due to a combination of an alteration in accounting estimates coupled with costs incurred by Uniqlo repositioning the brand in the UK market.
In October Fast Retailing’s executive vice president Nobuo Domae told Drapers that Uniqlo is looking to open bigger stores in the UK and is in the process of securing a location for a new London flagship store of at least 43,500 sq ft.
As a result of this move to find larger stores, Uniqlo has closed some of its smaller stores in the UK, resulting in a £1.7m loss for the retailer, payable on lease termination and onerous lease provision for loss-making stores.
In a statement Uniqlo said: “Despite facing some tough challenges in the UK’s current economic climate, Uniqlo feels that it offers the right product for its market and is committed to further expansion within the UK with a positive long term outlook for the future.”
Uniqlo opened its global flagship store on New York’s Fifth Avenue in October last year.