Report: Japan's Uniqlo to Exit Russia, Paving Way for Sale of Business

FILE PHOTO: A shopper looks on, inside a Fast Retailing's Uniqlo casual clothing store in Tokyo, Japan January 11, 2023. REUTERS/Issei Kato/File Photo
FILE PHOTO: A shopper looks on, inside a Fast Retailing's Uniqlo casual clothing store in Tokyo, Japan January 11, 2023. REUTERS/Issei Kato/File Photo
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Report: Japan's Uniqlo to Exit Russia, Paving Way for Sale of Business

FILE PHOTO: A shopper looks on, inside a Fast Retailing's Uniqlo casual clothing store in Tokyo, Japan January 11, 2023. REUTERS/Issei Kato/File Photo
FILE PHOTO: A shopper looks on, inside a Fast Retailing's Uniqlo casual clothing store in Tokyo, Japan January 11, 2023. REUTERS/Issei Kato/File Photo

Japanese brand Uniqlo has decided to leave Russia after suspending its operation there last year, paving the way for a sale of the business, the Izvestia newspaper cited Russia's deputy trade minister as saying.

Uniqlo owner Fast Retailing suspended the clothing brand's operations in Russia in March, 2022, joining scores of international companies, after Moscow sent troops into Ukraine in what it dubbed a "special military operation".

Deputy Minister of Industry and Trade Viktor Yevtukhov said the company has decided to completely leave Russia but has not yet submitted an application to the government, which means the chain has no buyer yet, Izvestia reported on Tuesday.

"I think they can offer potential buyers their business model," Izvestia cited Yevtukhov as saying. "The Japanese retailer will be able to offer ... lease agreements, popular points of sale with the good buyers traffic and equipment."

Fast Retailing said in a statement its operation in Russia remains suspended, adding some stores were closed with "no foreseeable prospects to resume operations."

The company will continue to monitor the situation closely and make decisions accordingly, the statement said.

Tadashi Yanai, the founder of Fast Retailing, told Japanese media earlier that Uniqlo was operating 50 stores in Russia.



UK Bootmaker Dr. Martens Sales Fall on Subdued Demand 

Boxes of Dr. Martens shoes are pictured in the warehouse of local footwear retailer "Pomp It Up" in Bussigny near Lausanne, Switzerland 24 April, 2019. (Reuters)
Boxes of Dr. Martens shoes are pictured in the warehouse of local footwear retailer "Pomp It Up" in Bussigny near Lausanne, Switzerland 24 April, 2019. (Reuters)
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UK Bootmaker Dr. Martens Sales Fall on Subdued Demand 

Boxes of Dr. Martens shoes are pictured in the warehouse of local footwear retailer "Pomp It Up" in Bussigny near Lausanne, Switzerland 24 April, 2019. (Reuters)
Boxes of Dr. Martens shoes are pictured in the warehouse of local footwear retailer "Pomp It Up" in Bussigny near Lausanne, Switzerland 24 April, 2019. (Reuters)

British bootmaker Dr. Martens posted a 3% fall in its third-quarter reported revenue on Monday, as consumers stayed away from pricey purchases in key markets due to economic uncertainties.

The company, whose leather boots can be priced as much as $200, has been cutting inventory and debt as part of its cost-saving and turnaround plans after elevated costs and weak wholesale demand, especially in the US, weighed on its earnings for months.

"We continue to actively manage our costs and are on track to meet our inventory reduction target for FY25," newly appointed CEO Ije Nwokorie said in a statement.

The Wellingborough, UK-based company has been actively investing in marketing, including discounts, to revive demand.

Dr. Martens logged 260 million pounds ($323.60 million) in revenue, down from 267.1 million pounds in the third quarter of fiscal 2024.

It, however, kept its 2025 financial year guidance unchanged.