Japanese casual clothing retailer Fast Retailing dismissed any chance of their company making products in the US in spite of President Donald Trump's repetitive calls for manufacturers to produce there. Tadashi Yanai, chairman and president Fast Retailing, made the remarks despite calls by US President Donald Trump for American and foreign companies operating in the United States to manufacture in the country. He also added the company's logistics system is a key issue for its US operations, adding Fast Retailing can open outlets at a pace of 20 to 30 a year.
Yanai says Trump administration's moves would not do US consumers any good, as local production for his firm is impossible at customer-friendly prices. He added, they will pull out of the United States if forced to engage in local production. Yanai further added even if Trump directly called on Yanai's company to build a plant in the US, as he did with Toyota Motors, Fast Retailing would not be able to manufacture at costs that enable attractive price points for customers in the US. He is confident about consumers coming to Uniqlo stores if they provide products that match their lifestyle.
Yanai said the company's strategy will include opening outlets in areas around Silicon Valley on the West Coast and large cities on the East Coast, including New York and Boston. While closing existing outlets in large shopping malls on city outskirts. Yanai also stated Fast Retailing has started studying the possibility of using aircrafts to move products in the US as well as building a new logistics center. He explained bringing US operation to profit may take time, citing rival H&M as an example. Even though swift growth of online retailers, including Amazon.com, has significantly muffled brick-and-mortar operators in the US.