Contrary to Increasing Sales of Cars
Uniqlo decided to close its store in Myeong-dong on Feb. 1, 2021. Opened in November 2011, the store is a global flagship store of Uniqlo, which was the second-largest in the world at that time. Its sales amounted to two billion won on the opening day alone.
The decision has to do with the ongoing boycott of Japanese products in South Korea and COVID-19, which has resulted in a rapid decline in the number of foreign tourists visiting Myeong-dong and a serious recession in the district.
Uniqlo shut down 26 stores from July 2019 to November this year amid the boycott. The operating losses of FRL Korea, which runs the brand in South Korea, amounted to 88.3 billion won from September last year to August this year. Its sales totaled 629.7 billion won, down 55 percent from a year earlier.
On the other hand, Japanese automakers’ sales volume in South Korea is rebounding. Honda, Toyota and Lexus showed an increase in sales for the fourth, third and second consecutive month, respectively.
The Korea Automobile Importers & Distributors Association announced on Dec. 4 that the three brands’ new registration increased 14.5 percent to 1,987 cars last month. Specifically, the number of newly registered Lexus cars rose from 871 to 951 and the figures rose from 553 to 623 and from 311 to 413 for Toyota and Honda, respectively.