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Apparel brand Uniqlo is riding a wave of customer interest in its affordable offerings and plans to dramatically expand its footprint in the U.S. over the next three years.
Uniqlo USA CEO Yoshihide Shindo said he aims to have 200 stores in the U.S. by 2027, beauty, fashion and wellness site Glossy reported. Hitting that target would represent a big growth spurt for the company, which has 53 stores nationwide now.
“It’s an exciting phase of growth as we continue to open stores throughout North America,” Shindo told Glossy. “Expansion in the U.S. is an important step.”
The brand is already well-established in major cities, so the new focus is on places like Long Island, where two stores will open this month. The company will open in areas that are proven retail markets but not within urban centers, Glossy reported.
Uniqlo North America saw a big bump in both its revenue and its profit in fiscal year 2023, with revenue up 43.7% year-over-year to 163.9 billion yen and its operating profit up 91.9% year-over-year to 21.1 billion yen, Uniqlo’s parent company, Japanese-based Fast Retailing, reported last week.
Fast Retailing anticipates an 18% increase in annual profit this year, Reuters reported. The company is betting that higher costs of living will drive consumers to buy its relatively inexpensive wares, Reuters said.
Around this time last year, it was luxury brands that were planning their expansions. Now, some of those same brands are stumbling, with some missing earnings targets in the third quarter as rising inflation and economic uncertainty in the U.S., Europe and China have caused previously spendy customers to pull back, Reuters said.
The Uniqlo stores to come will have features the brand has been rolling out over the last year, including self-checkout stations and a repair station to mend previously purchased items, according to Glossy. Stores will also host community events and partner with influencers.
“We do not see our stores as simply a place to sell clothing,” Shindo told Glossy. “They are [also about] the communities that we are joining.”
Fast Retailing plans to open 20 more stores in North America in the next 12 months.
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