World's third-largest fashion brand Uniqlo plans to open smaller-sized stores in India

Uniqlo, the world’s third-largest fashion brand, plans to open a majority of its new stores in India in a smaller format, ranging from 10,000-15,000 sq. ft., as compared to most of its current store sizes, which range from 20,000-35,000 sq. ft. Uniqlo has slashed the store size in Vegas Mall in Dwarka by almost half, to about 10,500 sq. ft., and reduced it from an earlier version spanning two floors to just one floor.

According to a spokesperson, Uniqlo has no intentions to alter the size of any other existing store in the National Capital Region (NCR), where the brand has all of its six India outlets.

In FY 2020-21, Uniqlo India reduced net losses to Rs. 36 crore (US$ 4.64 million) from Rs. 64 crore (US$ 8.25 million) in FY 2019-20. In FY 2020-21, Uniqlo India reported a net income of Rs. 239 crore (US$ 30.82 million), up from Rs. 129 crore (US$ 16.63 million) in FY 2019-2020, according to Registrar of Companies (RoC) data accessed by business intelligence platform Tofler.

Uniqlo is among a host of global retailers, including Gap, Forever 21 and Aeropostale, among various other brands, to opt for smaller outlets after initially opening larger stores in India amid unjustifiable sales as compared to their sizes.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.