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Monday, April 29, 2024

Muji to double Chinese store openings to 50 per year

TOKYO — The Japanese operator of the Muji chain will double the pace of store openings in China, as the lifestyle retailer risks a backlash from human rights advocates in a bid to revive its struggling overseas business.

Ryohin Keikaku will open 50 outlets a year in China starting in the fiscal year ending August 2024, the midterm plan released on Wednesday shows. The company envisions using the intervening years to hire an executive team in charge of Chinese operations that will expand the chain to lower-tier cities.

The Muji chain is already in hot water for its decision to continue using cotton produced in China’s Xinjiang region, where abuses against the Uyghur population are alleged. But as sales slump across North America and Europe, Ryohin Keikaku is clearly placing its chips with the Chinese market.

The company anticipates sales of 700 billion yen ($6.3 billion) during the year…

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