Uniqlo's Parent Company Struggles: French Fashion Venture at Crossroads
Parijs, woensdag, 25 juni 2025.
Fast Retailing, the Japanese parent company of Uniqlo, faces a crucial strategic decision with its French brands Comptoir des Cotonniers and Princesse tam tam. After multiple restructuring attempts, these brands now risk entering receivership. The company has decided to withdraw financial support, signalling a fundamental reassessment of its European retail strategy. The brands, once popular in the 2000s, continue to face persistent challenges in a changing fashion market and have failed to capitalise on price reductions and collaborations.
Strategic Restructuring of French Fashion Landscape
Fast Retailing has decided to halt financial support for Comptoir des Cotonniers and Princesse tam tam, indicating a radical reassessment of its European retail strategy [1][4]. The two brands, which were merged into a single legal entity Fast Retailing France in September 2024, are on the verge of entering bankruptcy proceedings [2][4].
Historical Context and Market Challenges
Both brands have undergone multiple restructurings in recent years. Princesse tam tam closed 27 of its 69 stores and reduced its workforce from 235 to 151 employees. Comptoir des Cotonniers shut down 28 of its 67 locations and eliminated 101 positions [3]. Despite attempts to increase attractiveness, such as 30% price reductions and collaborations with Uniqlo, sales continued to decline [3].
Financial Situation and Future Outlook
Despite challenges with these French brands, Fast Retailing performs strongly on a global level. In the first half of the 2024-2025 fiscal year, the company reported a net profit of US $1.47 billion, a 19.2 percent increase year-on-year [5]. Uniqlo France remains unaffected and operates under a separate legal entity [3].