Japanese fashion retailer Uniqlo has posted widening losses of £9.7m from £739,387 in the previous year but still plans to invest “significantly” in growing the brand in the UK.
The retailer said £1.7m of the loss recorded in the year to August 31 2011 can be attributed to a combination of costs incurred to restructuring and the repositioning of Uniqlo in the UK market, as well as a change in accounting estimates.
Turnover also dropped in the period, falling 0.7% to £63m.
A Uniqlo spokeswoman said: “The long term aim for Uniqlo UK is to open large format stores in alignment with the group global strategy, and as such, a level of the loss has been incurred due to small store closures.
“We are continuing to seek suitable store locations in the UK.”
The retailer currently has 12 stores in London.
In documents filed at Companies House, Uniqlo added: “Despite facing some tough challenges in the UK’s current economic climate, Uniqlo feels that it offers the right product for its market.”
On Friday Retail-week.com revealed Uniqlo is searching for a global flagship in London to rival its Fifth Avenue landmark store in New York as part of its owner’s ambitions to become the world’s largest clothing retailer.
Property agent Harper Dennis Hobbs acts for the retailer.