Grand University to inaugurate its first U.S. retail outlet
Japanese apparel retailer GU, owned by Fast Retailing which also owns Uniqlo, is set to open its first U.S. store this fall in the SoHo neighborhood of New York City. The pop-up store, marking GU's first location outside of the Asia region, will offer trendy apparel for both men and women.
GU's foray into the U.S. market is part of the company's expansion strategy, aiming to reach a wide range of customers, including New York residents and tourists. Osamu Yunoki, CEO of G.U. CO., stated that this pop-up shop will offer products filled with the sense of trendiness exemplified in the GU brand message of 'Your Freedom,' allowing customers to enjoy outfits that freely express their individuality.
The brand, known for its trendy fashion pieces at low prices, aims to strengthen its ability to expand its range of affordable products, reduce lead times, and buy and stockpile raw materials. GU contributes nearly 12% to Fast Retailing's net sales.
Meanwhile, GU's sister brand Uniqlo, temporarily closed its stores in Russia in March 2022, following intense public scrutiny after the company initially stated it would not halt operations in Russia despite the invasion of Ukraine. The company faced criticism for its stance, and the decision to suspend operations was ultimately taken in response to the challenging environment and public pressure.
While there were speculations about Uniqlo exiting Russia permanently, Fast Retailing has recently clarified that the suspension remains in place but with no immediate plans to resume operations. Uniqlo's founder, Tadashi Yanai, later stated that the company would not resume operations in Russia. Despite the temporary closure, Uniqlo has not officially exited the Russian market, but has closed some stores with no foreseeable return.
- GU, a Japanese fashion retailer, is leveraging AI research in their expansive strategy to reduce lead times and increase the assortment of affordable products.
- The fashion-and-beauty industry is closely monitoring GU's U.S. debut, as the brand's trendy apparel might impact the retail sector, especially in the lifestyle segment.
- In the finance realm, GU contributes significantly to Fast Retailing's net sales, nearly 12%, indicating a strong business relationship between the two entities.
- The AI-driven strategy of the industry might face policy challenges, as public pressure influenced Uniqlo's decision to temporarily close stores in Russia.
- With television coverage focusing on Uniqlo's temporary store closure in Russia, the fashion and finance industries are closely watching the ongoing situation's impact on retail businesses.
