Japan's Muji operator flags China uncertainty as net profit falls

Ryohin Keikaku says Chinese consumption is 'dynamically changing'

Sales at Muji's existing stores in China show that consumers are becoming less willing to spend. © Reuters

CHIHIRO ISHIKAWA, Nikkei staff writer

October 13, 2023 19:45 JST

TOKYO -- Japan's Ryohin Keikaku, owner of lifestyle brand retailer Muji, reported 15% growth in revenue from its Chinese business in the year through August, though the company said demand is cooling as concerns over the country's economy grow.

"The current Chinese [consumption] situation is dynamically changing," President Nobuo Domae told reporters during an online news conference on Friday, adding that it is difficult to make predictions. Shops in China are experiencing a slowdown in sales growth, according to the company.