China-Japan row takes toll on Uniqlo outlets

20 Sep '12

2 min read

Following anti-Japan protests stirred by a diplomatic row between China and Japan over a group of islands in the East China Sea, Japanese retail major, Fast Retailing Co, has closed around one-third of its Uniqlo casual apparel outlets in China.

The retailer announced that it has closed down 42 of its 145 Chinese outlets, sacking around 200 Japanese employees employed at these outlets.

Till now, no instances of damage to store facilities or products, or personal injury to employees or their families have been reported. But, the retailer said it intends to keep a close watch over the situation in China.

The age-old row over the unpopulated islands that China claims to be in its territory intensified last week after Japanese Government made attempts to purchase some of these islands from a private Japanese owner.

The Japanese conglomerate was also compelled to detach itself from a photo on the Internet, which indicated a sign attached to a window display at one of the Shanghai based Uniqlo outlets that read "the Senkaku Islands belong to China."

The retailer clarified that the said photo was not taken under the company’s instruction. Also, it added that it believes that businesses should keep away from taking any political stand or voicing their views on diplomatic issues.

Fibre2fashion News Desk - China

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