Uniqlo is taking bold measures in the war for talent: the Japanese fashion brand will offer its employees up to 40 % more pay. Especially in Japan itself, the ageing population poses a problem.
Uniqlo’s parent company, Fast Retailing, has made a remarkable announcement: the fashion group is going to sharply increase its employees’ salaries. Salaries could rise as much as 40 %, especially in its home country Japan.
As of March, both shop associates and office workers will earn quite a lot more. The clothing company does not say how much the increase is on average and how exactly it is calculated, but does give an example: an entry-level shop manager will be making 36 % more.
Japan is struggling with a severely ageing population: almost 30 % of all its inhabitants are over 65. This puts a heavy strain on the economy and on younger generations. Wages have virtually not risen for thirty years and the economy is stagnating as well. Due to the shrinking population, even slightly negative economic growth can be expected in the coming decades. Nonetheless, to stimulate growth, several Japanese companies are now increasing wages.
Want to know more about the impact of ageing on retail and the ‘war for talent’? Read all about it in the book The Future of Shopping: Re-set Re-made Re-tail, finalist of the PIM Marketing Literature Prize.