Expanding its reach into the West for the first time, Japan’s trendy apparel retailer, GU (also known as the lower-price alternative to sister brand Uniqlo), announced plans this week to enter the U.S. market — opening a pop-up in New York City’s SoHo this fall.
Known for on-trend styling and affordability, GU (pronounced by the letters ‘G’ and ‘U’) and its sister brand Uniqlo are both wholly owned by the Japanese multinational retail holding company, Fast Retailing. Launched in 2006, GU operates 450 stores in Japan, Taiwan, Hong Kong and mainland China. Last year, GU generated 249.4 billion yen ($1.88 billion) in revenue, reports Nikkei Asia. To accelerate the globalization of GU, the company decided there was no better place than SoHo, “the fashion center of the world,” to plant its first flag outside of Asia.
“It is a great honor to be opening our first store in the United States. New York is a place where people with diverse backgrounds come together from around the world,” says Osamu Yunoki, CEO of GU. “By opening a pop-up shop in the center of SoHo, we will be able to reach a wide range of customers … allowing them to enjoy outfits that freely express their individuality.”
The name “GU” is a play on the Japanese word for “freedom.” The company’s brand banner,”Your Freedom,” stands for delivering unique choices in style, unfettered by high prices. GU’s signature product is a pair of jeans costing just 990 yen ($7.33).
The fluid nature of a pop-up will allow GU to cost-effectively explore the American market before establishing potential brick-and-mortar stores, according to Yunoki. Providing a testing ground for its initial fashion offerings, the 2900-square foot sales space will remain open for about a year. The exact opening date has yet to be announced. Yunnoki said GU’s line in the U.S. will be refined and curated to match the preferred styles of Western customers.
“We want to convey the unique characteristics of GU. These include beautiful design, high quality and affordable pricing. We are constantly pursuing the perfect balance of these three things,” Yunoki told Women’s Wear Daily. “We have had strength in Asia and we were thinking of expanding from there step by step, but in order to become truly global, we realized it would be faster to open a store at the fashion center of the world in New York’s SoHo.”