Fast Retailing Co., Ltd. has revised its sales target for fiscal 2020 downward from 5 trillion yen to 3 trillion yen.
Tadashi Yanai, Chairman, President and CEO of Fast Retailing, says, “Three trillion yen is reasonable from the current stage. However, we will become the world’s number one apparel manufacturer-retailer. Although it may be slightly later, we are going to change the company with an aim of achieving sales of 5 trillion yen.”
According to Yanai, the fashion industry is in a recession, and a new industry should be created that would make life better by moving in the same direction as the world and meeting the needs of customers. His aspiration is the creation of an apparel information manufacturing-retailing business by entirely transforming the supply chain including the procurement of materials, planning, designing and sales into one that is customer oriented and that offers products that are really in need.
In the future, Fast Retailing will endeavor to achieve growth by globalization and digitalization, with the targets being (1) growth in overseas UNIQLO business, (2) growth in E-commerce business (medium-term goal is a sales ratio of 30%), and (3) making the GU business a second major business pillar of the group with sales of 1 trillion yen. Accordingly, the company will target sales of 3 trillion yen in fiscal 2020 with an operating profit margin of 15%, and significantly expand E-commerce business.