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Uniqlo Will Raise Prices As Japan Shifts Attitude On Holding Prices

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CFO Okazaki cites weakness of the yen that is driving up the cost of raw material and shipping.
Uniqlo will raise prices despite a Japanese reluctance to raise prices. “We have reached a point where we have no choice but to raise prices of some products” says Chief Financial Officer Takeshi Okazaki. He cited the weakness of the yen that is driving up the cost of raw material and shipping. He noted that the currency is at its weakest point in five years against the dollar. A November poll by Reuters showed that only 14% of Japanese firms have passed on cost to consumers, but that another 40% planned to do so. This underscores the reluctance of Japanese firms to increase prices. It is especially difficult for a firm like Uniqlo that competes on price. Mr. Okazaki said that “hiking prices was not an easy issue for Uniqlo. Our basic policy is to avoid raising prices as much as possible.

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