Two companies that have been featured in BUSINESS REVIEW, Uniqlo and Cath Kidston, are currently in negotiation over a possible takeover bid by the Japanese company for the UK-based firm. This is part of Uniqlo’s strategy to become the largest clothing retailer in the world by 2020. It is currently the fourth-largest clothing retainer, behind Zara, H&M and Gap.
While Cath Kidston is seen as a quintessentially British brand, it actually has 75 international stores compared to 60 UK ones. The Asian market is lucrative for both companies, with Uniqlo having 856 stores in its home market of Japan. However, the company has struggled in Japan lately as customers have seen an increase in taxation, which has resulted in lower spending on the high street. In 2013 Cath Kidston made more than £19 million in pre-tax profit and the firm is valued at £250 million.
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