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Retail

Uniqlo preps for tariffs and South Korea row after strong year

Fast-fashion giant grows same-store sales for seventh straight term

Uniqlo's Ginza flagship: In addition to headwinds abroad, the retailer faces a turning point in its strategy in Japan of focusing on large stores in prime locations. (Photo by Ken Kobayashi)

TOKYO -- Japanese apparel chain Uniqlo eked out a seventh consecutive year of domestic sales growth, but parent Fast Retailing's outlook is clouded by the U.S.-China trade war and a consumer backlash in South Korea.

Washington's latest round of tariffs against China will likely weigh on Uniqlo's U.S. operations, where it runs 50 stores. Uniqlo is considering relocating Chinese apparel production to Southeast Asia due to the duties. The company looked to turn a profit in the U.S. in the year ended last month, but the operation appears to have bled red ink.

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