Uniqlo Plots Major Return To U.S. Retail Market
Uniqlo is taking another stab at tapping into the American fashion zeitgeist by debuting 11 new stores in key U.S. cities.
The budget retailer will open six stores in California and another five in Texas this year, according to The Wall Street Journal. The company, owned by Japan-based Fast Retailing, has more than 70 stores in North America but aims to more than double its presence by 2027.
The expansion represents Uniqlo’s second attempt at infiltrating the U.S. market, which was unreceptive to the brand upon its North American debut in 2005. Financial losses from that endeavor led Uniqlo to shutter some of its stores.
The company has spent several years building visibility and brand awareness in the U.S. and now understands the American consumer better, Uniqlo USA Chief Executive Yoshihide Shindo told The Wall Street Journal.
Those efforts have paid off, with Uniqlo’s North American revenue rising nearly 44% to $1.08B at the close of its most recent fiscal year.
Uniqlo’s market share pales in comparison to those held by competitors Old Navy, Shein and H&M, but the company hopes to grow its numbers by breaking into new markets where e-commerce sales have soared, such as Dallas and Houston.
Earlier this year, Fast Retailing announced it would accelerate efforts to bring GU, its other fashion label, to the U.S. The brand offers slightly lower price points than Uniqlo and is aimed at younger clientele, according to The Japan Times.
Other foreign fashion brands, including Spanish multinational fast-fashion company Zara, are also increasing their North American presence, with plans to open, refurbish or enlarge at least 30 stores in the U.S. by 2025, per Bloomberg.
