With this week’s opening of GU’s much-anticipated first permanent U.S. store, the company is trying to accelerate its global growth with the debut of e-commerce and an app.
Primarily centered in Japan and other parts of Asia, the Japanese retailer is trying to attract more Stateside sales from its 10,225-square-foot store at 578 Broadway. To test the waters, so to speak, the affordable apparel line had run a pop-up location nearby since September 2022. Pronounced as “G” “U,” the soon-to-debut two-floor store will feature apparel, accessories, bags and footwear for women and men. But the new location will not be awash with a flood of products, featuring instead a more curated assortment designed to simplify shopping.
The new store is also showcasing the GU New U concept that encourages shoppers to reinvent themselves through style with the latest fashion trends.
GU, which is a sister brand of Japanese apparel giant Uniqlo, will offer its collaborative designs with Undercover in the new U.S. flagship and online. Designed by Jun Takahashi, Undercover is known for its tough-to-compare innovative creations.
GU’s latest installment from Undercover, a 22-item line that is called “Kosmik/Noise,” is meant to play up “comfortable noise in everyday life.” It is being unveiled in the U.S. ahead of other markets.
Designed to be unisex, although they are technically men’s designs, the range includes track jackets and pants, stadium jumpers, logo tops and convertible items with detachable sleeves and hems. There are also styles that were purposely designed inside-out with exposed seams. The Undercover assortment features special-edition collaborative pieces from the film “The Wizard of Oz,” such as a white crewneck sweatshirt imprinted with an image of Judy Garland in her starring role as “Dorothy” and “I WILL NOT SURRENDER.” There will also be only-in-New-York exclusives like “Big Apple” graphic T-shirts and ripstop tote bags.
Like Undercover, GU wants as many people as possible to be able to enjoy fashion, said GU’s chief executive officer Osamu Yunoki. The two parties first teamed up in 2021; this is their fourth effort. “They are one of our best collaborators,” he said.
GU’s fiscal year 2023 revenue and profit increased considerably, with revenue totaling $1.89 billion (U.S.), up 20 percent, and operating profit reaching $166 million, up 56.8 percent, according to Fast Retailing. GU opened 52 new stores in fiscal year 2023, primarily in Japan.
Although the 470-unit company wants to expands its retail footprint in the U.S., that plan won’t be mapped out until next year, Yunoki said. Most of the existing stores are in Japan, with other outposts in mainland China, Hong Kong and Taiwan. While Japanese customers tend to hide their body shapes and skin with the silhouettes that they favor, shoppers in the U.S. “naturally show off their body shapes and skin drastically” with their choices, he said. With that in mind, GU created new silhouettes for less body-conscious U.S. shoppers for spring 2023 and “we have been improving that every season,” Yunoki said.
There are also some colors for GU’s popular heavyweight styles, and select Undercover collaborative accessories that are being offered exclusively Stateside.
“We thought New York would have the most opportunity. It is kind of the central of the world regarding fashion, culture, lifestyle and everything so we jumped into New York,” Yunoki said.
To distinguish itself from competitors, GU takes a less-is-more-approach and is offering a more curated selection of items to try to reduce environmental waste. GU’s brand philosophy of “Mini edit Max,” is set up to offer “Max” style and quality with “Mini” prices and curated collection with practical on-trend items with affordable prices. Shoppers in the pop-up were interested in that very customized concept, Yunoki said. Each curated collection is designed to be mixed and matched, resulting in more styling possibilities with fewer products. “That’s very convenient for people, environmentally friendly and it doesn’t have to do with any unnecessary items. That is what I am excited about,” the CEO said.
Part of the incentive for that approach is due to the fact that shoppers are somewhat overwhelmed by the zenith of fashion choices they have online and in stores. “People are interested in fashion but they have no time to think about fashion all the time or money to spend all on fashion. That’s why we wanted to approach it,” he said.
