Uniqlo has withdrawn a planned price increase for its socks in Japan, a decision that reflects growing concern among consumers about the return of inflation. Fast Retailing, the clothing retailer’s parent company, said socks were considered a basic necessity and that it had therefore reconsidered its pricing plans.
The company had announced on October 16 that prices for its autumn and winter products would rise from November 10. The planned changes included ending promotional offers for four pairs of colored socks at 990 yen and three pairs at the same price. Individual pairs were due to cost 390 yen.
Fast Retailing founder and chairman Tadashi Yanai had previously said the company could not be the only retailer to avoid price increases. The group is facing higher raw-material and logistics costs, as well as the impact of a weak yen.
The reversal was welcomed by Japanese consumers concerned about steadily increasing prices. On October 30, Bank of Japan Governor Kazuo Ueda formally acknowledged that the institution’s 2% core inflation objective had been reached. The target was set in 2013, during a period when Japan was experiencing deflation.
Sources: Le Monde Économie.