Cici Cao
Muji owner Ryohin Keikaku sees signs that China's economy has hit bottom and plans to open new stores in more top-tier cities
President Satoshi Shimizu said in an interview with Nikkei that Muji's store sales in the mainland have been on an upward trend since September.
Shimizu said Muji also looks forward to China's economy recovering further and will focus on developing its customer base with an eye on spending power.
Muji's plan is to open medium and large stores mainly in shopping centers, and the Japanese retailer is considering going with flagship stores in first-tier cities, such as Guangzhou, where it does not yet have a presence.
Shimizu added that the company would continue to open stores in Japan, as Japan's market is larger even though both countries are experiencing growth.
He said that consumer sentiment in Japan is clearly rebounding and believes that shoppers will flock to its stores as long as quality products are offered at reasonable prices.
Muji aims to unveil 60 new stores annually in Japan and overseas, according to the brand's business projections to August 2027.
It is also aiming for an average annual growth of more than 10 percent in both revenue and operating profit.
Last year saw the company embarking on a period of strategic planning, and the coming years will focus on execution, said Shimizu.
As of the 2024 fiscal year ended August, Muji's consolidated net profit reached a record high of 41.5 billion yen (HK$2.05 billion).
