Muji to Rollout 50 Stores a Year in China
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Japanese homewares and lifestyle chain Muji is set to accelerate its expansion plan in China, adding 50 new stores per year.
According to Nikkei, the retailer will start the China expansion in the fiscal year ending August 2024 and in its largest international market, Muji is currently experiencing a swift recovery with sales in the third quarter increased 10 per cent and strong online performance.
Due to the new Covid-19 waves in Southeast Asia, Muji’s sales in this region are also recording a drop. This could trigger the retailer to shift its focus to expand progressively in China. “The Japanese and Asian markets are the pillars of growth,” Senior MD Nobuo Domae, who has been appointed as Ryohin Keikaku’s new President, told Nikkei Asia Review.
Ryohin Keikaku estimates Muji will record approximately $6.3bn during the year through August 2024 with operating profit expected to reach 52 per cent growth. Launched in China in 2005, as of last May the chain operated 294 stores across the country.
Besides China, Muji is also planning to expand its presence in other Asian countries such as Thailand and South Korea.