Types of Retailers

Coco Masters, “In Japan, Fast Fashion Rules in Slow Times,” Tokyo time.com, May 1, 2009.

Japanese consumers are still shopping, but not for luxury brands, whose sales are projected to decline by 10 percent in the first half of 2009. In Tokyo’s Harajuku district, known for its fashion-forward consumers, the boutiques are taking a backseat to fast-fashion giants that tout style for lower prices.

H&M opened in November and attracted 2,500 shoppers on its opening day. Britain’s Topshop opened around the same time, and Forever 21 will open a flagship store soon in the same district. All the big fast-fashion names thus will be there: H&M, Uniqlo, Topshop, Gap, Zara, and Forever 21.

Forever 21 anticipates a 40 percent global sales increase compared with last year. For $100 customers can purchase an outfit, a bag, shoes, and accessories; what more could they want? Other consumers are cross-shopping by purchasing fast-fashion clothes and pairing them with Gucci handbags.

The fast-fashion retailers allow customers to return to the store frequently for more items, because they are fashion forward enough to show flair but do not cost a lot. While most retailers are suffering 5 to 15 percent drops in their same store sales, Uniqlo’s increased by 3 percent in 2008 and 13 percent for the early part of 2009.