Japanese fashion retailer Uniqlo is understood to be looking for acquisitions in the UK and the US.
It is thought it wants to take advantage of the strengthened yen against the dollar and the pound and wants to invest in design-led brands.
Uniqlo parent company Fast Retailing said that sales increased 32.2 per cent in November year on year with total sales, including those through its direct channels, soaring 35.4 per cent.
The retail group has said it aims to increase sales by 70 per cent over the next two years and intends to reach that target through global expansion and acquisitions.
Fast Retailing has put US$1.4 billion aside for acquisitions and hopes this will help it reach its sales target of ¥1 trillion (£7.23 billion) by 2010.