Casual clothing chain Fast Retailing has begun sourcing apparel for its popular Uniqlo stores in several new countries including Turkey and Cambodia and may also source from Tunisia.

The retail giant has traditionally outsourced production to about 60 factories in China, Thailand and Vietnam but said Tuesday it has diversified its production base in a bid to produce clothing closer to the UK.

The operator of more than 600 stores added it also needed to alter its production base due to quotas on goods made in China and may look for a Tunisian factory to make apparel for the European market.

Uniqlo enjoyed phenomenal sales growth in the late 90's as shoppers snapped up its colourful styles at low prices in their droves.

But that growth failed to last and it recently posted a 30 per cent slide in December same-store sales and only yesterday said it was scaling back its UK expansion plans due to rising costs.