Uniqlo Sales Plunge Despite Special Discounts

A university student stands with banners criticizing Uniqlo’s controversial TV advertisement in front of a Uniqlo store in Seoul on Oct. 22, 2019. (Yonhap)

SEOUL, Nov. 1 (Korea Bizwire) — Uniqlo, a Japanese fashion retailer targeted by the boycott movement in South Korea following Japan’s restrictions on exports to the country, has suffered a plunge in sales despite massive discount offers.

Rep. Park Kwang-on reported based on a compilation of data collected from eight credit card companies in South Korea that Uniqlo’s last month sales amounted to 9.1 billion won (US$7.8 million), merely 33 percent of the sales record reached in the same month last year.

Uniqlo only managed to generate 8.1 billion won in sales during the massive discount period held between Oct. 1 and 14, which was 39 percent of sales recorded in the same period last year.

Uniqlo, celebrating the fall and winter seasons, has renovated stores, and began a marketing offensive driven by Furis, Heattech, and other signature products.

Since October 3, Uniqlo held a 15th Anniversary Thank You Event both on and offline, offering discounts of as much as 50 percent for many of its signature products.

Reports of several products being sold out online, and offline stores crowded by customers seemed to suggest that the boycott movement was in decline.

Park argued, however, that the boycott movement is still strong.

Topten, a local fashion brand run by Shinsung Tongsang Co. that is seen by many as an alternative to Uniqlo, saw a boost in sales last month, up by 61 percent since last year.

“Despite the discount events, Uniqlo’s sales are far from recovery,” said Park.

H. M. Kang (hmkang@koreabizwire.com)