TOKYO — Fast Retailing Co. Ltd. said Tuesday it would open new logistics centers in cooperation with Daiwa House Industry, a construction company that has worked with the retailer on roughly 550 stores, including the very first Uniqlo store that opened in 1999.
The new centers are to streamline distribution, making shipping of online orders faster and cheaper for customers and enabling same-day delivery in some areas.
Construction of the first distribution center under the partnership is due to begin next month, with a target opening date of late January 2016. It will be located in the Ariake district of Tokyo and will handle fulfillment of orders placed by customers within the greater Tokyo area.
Tadashi Yanai, Fast Retailing’s chairman, president and chief executive officer, said he plans to open additional centers with Daiwa House all across Japan, as well as in various other countries throughout the world.
The new logistics centers will differ from Fast Retailing’s current system in that they will offer a realtime connection between individual stores and warehouses, leading to faster shipping times and fewer returns.
The retailer currently uses a system in which products go from factories to distribution centers, and then on to “transfer centers” before being delivered to stores. The new logistics system will eliminate the need for transfer centers.