WESTERN EXPANSION: Uniqlo is opening four new stores in the Bay Area in addition to its existing flagship store in San Francisco (pictured). The company recently outlined some of its expansion plans—in the U.S. and abroad. Photo by Courtesy of Uniqlo
UNIQLO EXPANSION
Uniqlo’s Retail Expansion Plan Includes LA, but Not Yet
Uniqlo, Japan’s leading specialty store, seems to be opening everywhere but Los Angeles.
On Sept. 30, the company opened what is said to be its biggest store—at more than 38,000 square feet—in Shanghai. In July, two Uniqlo stores opened in Bangladesh. It also recently announced October grand-opening dates for 10 American stores, four of which will be located in the San Francisco Bay Area. By the end of 2013, there will be 17 Uniqlo stores in the United States and a total of 1,200 stores across the globe. In 2014, the retailer forecasts opening 20 more stores in America.
Larry Meyer, the New York–headquartered chief operating officer of Uniqlo USA and senior vice president of Uniqlo’s parent company, Fast Retailing, would not confirm a date for a Los Angeles store. “Eventually, we will come to Los Angeles,” he said. Meyer joined Uniqlo in January. From 2001 to 2012, he worked at Forever 21, where he was executive vice president.
Uniqlo has reportedly been scouting Los Angeles real estate for years. While a deal seems to be elusive, Chuck Dembo, partner at Beverly Hills, Calif.–based commercial real estate firm Dembo Realty, said the Japanese retailer has many suitors. “Savvy landlords are rolling out the red carpet for them,” Dembo said. “They occupy large spaces, and they serve as an anchor tenant.”
Uniqlo’s preferred retail rollout method is to build a flagship and to later build sister Uniqlo stores in the same region as the flagship. The retailer is known for opening multi-level flagship stores on urban streets, such as its location in San Francisco’s Union Square, which opened in 2012. Meyer said the retailer also would open in malls, depending on a region’s characteristics.
“It all depends on the market,” he said. “Some markets have more-defined city centers. Some are suburban.” In suburban areas, Uniqlo stores have opened in better malls.
Uniqlo differs from its closest competition, such as Hennes & Mauritz (H&M) and Forever 21, because of its emphasis on technical fabrics. “None of the other fast-fashion companies invest in the technology of textiles,” said Mercedes Gonzalez, director of Global Purchasing Companies, a New York–headquartered buying office and retail consultant.
Uniqlo’s Heat Tech fabrics absorb body moisture, and the moisture generates heat around the garment. An antibacterial agent also controls odors, according to a company statement.
The schedule for upcoming Bay Area Uniqlo store openings includes the Hillsdale Shopping Center in San Mateo on Oct. 11, the Stonestown Galleria in San Francisco on Oct. 18, the Westfield Valley Fair Mall in Santa Clara on Oct. 25 and the Bay Street Emeryville in Emeryville on Nov. 1
Fast Retailing is a public company in Japan. For fiscal 2013, the company forecast sales will surpass 1 trillion yen. But a company statement noted sales at Uniqlo USA were challenging during the nine-month period from September 2012 to May 2013. “However, losses continue to hover stubbornly at previous-year levels,” according to a Fast Retailing statement. Uniqlo does not break out numbers for its U.S. sales, a company representative said.
