The Japanese billionaire behind Uniqlo, the casual wear chain, has brushed off concerns about the credit crunch and claimed that retailing is entering a new era of globalisation.

Tadashi Yanai, chairman and president of Fast Retailing, which owns Uniqlo, said that companies should take advantage of the “enormous opportunity” afforded by the end of barriers to cross-border expansion.

He added that it was entirely possible that a Chinese store group could acquire a large UK rival and become the world’s biggest retailer in the coming years. “Who would have thought ten years ago that Mittal would buy Arcelor,” Mr Yanai said.

The comments came as he opened Uniqlo’s new flagship store in Oxford Street, Central London, a day after Marks & Spencer announced plans to expand in India and China.

He said: “In the past only the US economy was the engine for global growth, but the EU, Japan and China are all still in a long-term growth cycle.

“At the same time there is now an enormous opportunity for fashion and retailing. It is entirely natural that Marks & Spencer wants to prove itself in the fastest-growing market in the world.

“We are all at the starting line, the competition is just beginning and it will be great fun for everyone. We all now have the chance to compete and the fittest will survive.” Uniqlo’s own expansion push comes five years after the failure of its first foray into the UK when Mr Yanai said the group made the mistake of trying to grow too quickly.

It now has a dozen stores in the UK, but 700 across Asia and is hoping to expand into China, Russia and the US, where Fast Retailing tried to buy the Barney’s department store for $900 million (£428 million) this summer.

The group lost out on Barneys to Istithmar, the Dubai-based private equity group, and has since been linked with Saks.

Mr Yanai said: “Barneys was not a disappointment. These things happen in business. We will be sure to find an opportunity in the course of time.”

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