"You Could Die Trying to Buy Clothes"... Record-Breaking 'Killer Heatwave' Forces Uniqlo to Close Stores

Uniqlo Closes Some Stores Amid European Heatwave
Fast Retailing CFO: "Consumers Are Not Going Out"
Greggs, M&S, and H&M Also Adjust Lineups and Take Emergency Measures

In front of the Uniqlo store. Photo by Yonhap News

As record-breaking heatwaves sweep across Europe, established norms in the retail industry are being upended. The traditional formula that rising temperatures lead directly to increased apparel sales has been shattered, resulting instead in decreased consumer spending and operational disruptions due to people choosing to stay indoors. This paradoxical outcome highlights that climate risk is emerging as a core management variable, rather than a mere seasonal factor, for businesses.

"It's too hot to go out"...The Collapse of the Demand Formula

According to the Financial Times (FT) on July 11 (local time), Fast Retailing, the parent company of global SPA brand Uniqlo, has temporarily closed or shortened the operating hours of some stores in Europe due to the heatwave. The company had hoped for increased sales of summer products such as linen shirts and functional apparel, but the result was the opposite. The record-breaking high temperatures caused consumers to avoid going outside altogether, leading to a sharp decline in visits to brick-and-mortar stores.

Tourists in London using umbrellas instead of parasols to shield from the heat. Photo by AP Yonhap News Agency

Chief Financial Officer Takeshi Okazaki stated at the quarterly earnings announcement, "Air conditioning systems in European cities were not designed with such extreme heat in mind, and store interiors were temporarily placed in extremely hazardous conditions," adding, "There were some stores that simply could not operate during this period."

Simultaneous Shock to Distribution and Infrastructure

The impact of the heatwave is spreading across industries. British bakery giant Greggs took the measure of shutting down 11 stores across the UK for two days due to the heat. Marks & Spencer, a leading British retailer, also experienced failures in refrigeration equipment at some stores due to the extreme heat, and is now developing an emergency response plan that assumes maximum temperatures could soar to 45 degrees Celsius. Uniqlo's major global competitor, H&M, announced it would adjust its product lineups and marketing schedules to reflect the trend of prolonged hot weather and climate variability.

Infrastructure responses are also ramping up. European high-speed rail operator Eurostar plans to introduce new trains that are heat-resistant and can operate without interruption in environments up to 55 degrees Celsius, exceeding the previous standard of 45 degrees. This move is seen as a preemptive response to the repeated heatwaves that physically strain rail tracks and power supply networks.

Uniqlo to Overhaul Supply Chain and Product Strategy

As climate risk becomes a management variable beyond a temporary weather anomaly, Fast Retailing has begun a comprehensive overhaul of its supply chain and store infrastructure. The core focus is to build logistics and operations systems that can quickly normalize store operations even after temporary closures caused by heatwaves and similar events.

Children playing at the fountain in Nice, France. Photo by AFP Yonhap News Agency

At the same time, the company is inspecting and expanding cooling infrastructure at European stores and strengthening development of functional apparel that can be worn comfortably in high-temperature environments. This demonstrates that climate change is not just a cost factor, but is also reshaping product strategies.

Strong Performance...Opportunity Amid Crisis

Interestingly, from a long-term perspective, some analysts say these prolonged high temperatures in Europe could present Uniqlo with a new opportunity to seize the market. Uniqlo has long been strong in developing breathable, lightweight functional fabrics (such as AIRism) to help customers cope with Japan's hot, humid summers. Now, as climate change pushes Western Europe toward a subtropical climate, demand for such functional apparel is surging among local consumers.

In fact, Fast Retailing’s global results have exceeded market expectations. For the fiscal third quarter (March to May) ending in late May, Fast Retailing posted a quarterly net profit of 146.7 billion yen (approximately 1.364 trillion won), up 39.1 percent from the same period last year. This was driven by the opening of new stores, especially in Europe and the United States, and strong overseas business growth worldwide. As a result, the company raised its annual operating profit forecast for the current fiscal year from 700 billion yen to 730 billion yen.

In front of the UNIQLO store. UNIQLO

This year's annual sales target has been set at 3.97 trillion yen (approximately 36.8555 trillion won). If this target is achieved, Fast Retailing is expected to firmly secure the second-largest position in the global fashion retail industry, overtaking Sweden's H&M and trailing only Inditex, the parent company of Zara.

FT noted that while Europe has become a key growth driver for Uniqlo, the recurring climate crisis will become the most significant variable fundamentally transforming companies' future investment directions and cost structures.

This content was produced with the assistance of AI translation services.