'No Japan' Ends After 1 Year 6 Months... Uniqlo Myeongdong Jungang Branch Closes

Closing on January 31 Next Year
Impact of COVID-19 on Myeongdong Commercial Area

Uniqlo Myeongdong Central Store will close its business as of January 31 next year. The photo shows the interior of Uniqlo Myeongdong Central Store. [Image source=Yonhap News]

[Asia Economy Reporter Cha Min-young] "No Japan, we do not go, we do not buy."

Uniqlo, which was hit hard by the Japan boycott movement in July last year, has decided to close its flagship store in Myeongdong Central this year due to the double hardship of the COVID-19 pandemic and the decline of the Myeongdong commercial district.

According to industry sources on the 5th, Uniqlo's global flagship store, Uniqlo Myeongdong Central, will cease operations as of January 31 next year. The Myeongdong Central store spans four floors with an area of 3,279㎡ (1,128 pyeong) and recorded daily sales of 2 billion KRW on its opening day in November 2011.

Uniqlo was targeted as a representative Japanese brand at the start of the boycott movement intensified by conflicts between Korea and Japan in July last year. Additionally, the brand image further deteriorated due to inappropriate remarks by executives at Uniqlo's Japanese headquarters.

The COVID-19 situation that occurred earlier this year led to a decrease in foreign visitors, causing sales in the Myeongdong commercial district, a major tourist attraction, to plummet. Domestic demand also naturally declined in line with the decreasing trend in clothing consumption.

The performance of FAL Korea, which operates Uniqlo in Korea, also halved. According to FAL Korea's audit report, during this period, FAL Korea's sales were 629.7 billion KRW, a 55% decrease compared to 1.378 trillion KRW in the same period the previous year (September 2018 to August 2019).

This content was produced with the assistance of AI translation services.