TOKYO — Fast Retailing Co. Ltd. wants to be the biggest around.
Tadashi Yanai, chairman of the firm, said Wednesday that the Japanese apparel company aims to grow its annual sales by more than seven times to 5 trillion yen, or $53.7 billion, by the year 2020. And analysts don’t think the goal is that far-fetched.
“We hope to become the biggest maker and retailer in fashion,” Yanai said during a press conference. “The dream will come true if we can grow our business by at least 20 percent each year.”
Yanai outlined the company’s long-range business plan as its Uniqlo chain reported a 5.6 percent spike in August same-store sales for Japan. The fast-fashion chain said consumers snapped up fall items like 3-D fit jeans and faux leather jackets.
The executive reiterated Fast Retailing is eyeing potential acquisitions, especially in Europe, but said there are few attractive companies on the market right now. Even without acquisitions, he said he thinks the company can reach 1 trillion yen, or $10.74 billion, in sales by 2010. Fast Retailing expects to post sales of 682 billion yen, or $7.33 billion, for the fiscal year ending Aug. 31.
In terms of the longer-term 5 trillion yen, or $53.7 billion, target, Yanai said he expects 3 trillion yen, or $32.2 billion, will come from Uniqlo’s business abroad. Uniqlo’s operations in Japan and Fast Retailing’s other brands, which include low-cost chain G.U., lingerie label Princess Tam Tam and Comptoir des Cotonniers, will generate the remainder.
As of June 30, Fast operated 867 stores, 777 of them in Japan.
As for Uniqlo, which will unveil its first collection by German designer Jil Sander in early October, there are many store openings on the horizon. An almost 25,000-square-foot flagship in Ginza will open Oct. 2. Stores in Nagoya, Osaka and elsewhere in Tokyo are also in the works. In 2010, Uniqlo will open its first global flagships in Shanghai and Moscow.
“If anyone can achieve these sort of ambitious growth targets — and they are ambitious — I’d put odds on them,” said Dan Gardenswartz, managing director at the Sage Group LLC, an investment banking firm that advises the retail sector.
Should Fast Retailing achieve Yanai’s projected growth, it could become the world’s largest specialty retailer, at least according to comparisons in 2009 dollars. In a study released last month, Sage’s Apparel and Retail Group placed Fast Retailing 12th in revenues during the last 12 months among publicly traded apparel retailers with sales of $6.97 billion.
@pantone announced their Color of the Year 2018: Ultra Violet. Nearly 20 months after the musician Prince’s death, fashion is having a purple moment. Varying shades of purple appeared on spring or fall runways, from @christopherkane to @calvinklein. @gucci’s Alessandro Michele bathed his fall runway in ultra violet-colored light at one point. Pantone 18-3838 is meant to “push the boundaries of what inspires us to look upward and outward to the future.” #wwdnews #wwdfashion (📷: @kukukuba)
@badgalriri’s @fentybeauty launch in September was a massive success on social media, powering $72.9 million of earned media value, according to Tribe Dynamics. The brand’s foundation offering sparked conversations about diversity in beauty, launching the growth of emerging influencers and propelling the brand’s support on social media. Today, #fentybeauty won Launch of the Year at the WWD #BeautyIncAwards. (📷: Chema Moya/EPE-EFE)
@marianna_hewitt has become one of the most influential content creators in the beauty space, with almost 800,000 Instagram followers and a newly launched skin care line called @SummerFridays. Today, she was awarded Influencer of the Year at the WWD #BeautyIncAwards. (📸: @sophiachabbott )
As shopping behaviors evolve, the retail experience must follow. Head over to retail experts @colliersinternational’s Knowledge Leader series to read more about the shift in our shopping era. #colliersretail #lovecolliers
@prada opened a pop-up club, called Prada Double Club, in collaboration with German artist Cartsen Höller at @artbasel Miami. Last night, guests – including @youngparis, @ritaora and even Miuccia Prada herself – gathered in a former ice factory where the pop-up is housed for a performance from @wyclefjean. Go to WWD.com for full coverage on all the exhibits, parties and more at #ArtBaselMiami. #wwdeye (📷: @lexieblacklock)
@louboutinworld and @disney are making magic once again, creating a set of shoe designs for the release of “Star Wars: The Last Jedi.” Louboutin designed a pair of shoes for each of the film’s four female leads: Rey (@daisyridrey), Vice Admiral Amilyn Holdo (@lauradern), Captain Phasma (Gwendoline Christie) and Rose Tico (@kellymarietran). The shoes will debut on Saturday at the L.A. premiere of the latest episode. #wwdfashion
Today at the #BeautyIncAwards 2017, WWD will be joined by beauty leaders from around the world as we honor this year's most innovative people, products, brands and places. Follow along here and on Twitter for live coverage from the exclusive event. #wwdsummits (📷: @elizaflorendo)
Exclusive: Beauty superinfluencer @marianna_hewitt is launching her first-ever skin care brand with her business partner @laurengores. Their new line Summer Fridays, which will be sold exclusively at summerfridays.com starting in January, is launching with just one product – a hydrating cream Jet Lag Mask. “We wanted to focus on one product that was amazing,” said Hewitt. Read the full interview on WWD.com. Link in bio. #wwdbeauty #wwdnews
Michelin star-rated chef PJ Calapa marks his first solo endeavor with today’s opening of @scampinyc –– the new Southern Italian restaurant located in Manhattans’ Flatiron District. The upscale yet welcoming environment matches the menu, which includes two types of scampi: traditional Italian langoustines in butter and the Americanized version with shrimp over pasta 🍤 - pictured here. #wwdeye (📷: George Chinsee)