Due to the Spread of Novel Coronavirus... Uniqlo Suspends Operations at Over 100 Stores in Hubei Province, China

[Image source=Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] On the 28th, Nihon Keizai Shimbun reported that Japanese Uniqlo has closed about 100 stores in Hubei Province, China, where Wuhan, the epicenter of the novel coronavirus infection (Wuhan pneumonia), is located.

According to the report, Uniqlo operates 738 stores in China (as of last November). The number of Uniqlo stores closed in Hubei Province currently accounts for 10% of all stores in China. Uniqlo stated, "It is still unknown when business will resume."

The closures began on the 23rd. At that time, Wuhan city suspended public transportation and took measures to block movement, making it difficult for employees to commute, leading to the cancellation of operations at 17 Uniqlo stores in Wuhan city. As the novel coronavirus spread throughout China, the number of closed stores has increased.

Japanese retailer Muji has also closed 10 stores in Wuhan city, Hubei Province, and suspended operations as of this day. It is reported that there are no Japanese employees stationed in Wuhan city among Muji staff. Muji, which operates about 260 stores across China, stated that for areas other than Wuhan city, they will "make decisions based on administrative and commercial facility trends."

Additionally, NHK reported that Japanese companies operating in Wuhan, Hubei Province, are accelerating the withdrawal of their employees. Among the 160 Japanese companies in Wuhan, half are automobile-related manufacturers. Nissan Motor has decided to repatriate local employees and their families, except for some. Honda, which has a factory in Wuhan, also plans to repatriate about 30 expatriates except for some, including the factory manager. Semiconductor manufacturing equipment company Tokyo Electron and retailer Aeon have also decided to withdraw Wuhan-based employees except for essential personnel.

Meanwhile, the Japanese government dispatched a chartered plane to Wuhan on this day, carrying about 200 Japanese nationals, who are scheduled to return to Haneda Airport on the morning of the 29th. Currently, about 650 Japanese people wish to return, so after repatriating 200 people in the first phase, additional chartered flights are expected to be arranged.