Uniqlo, the Japanese fast-fashion giant, is ramping up its expansion in South Korea with several new store openings, capitalizing on waning anti-Japan sentiment and inflation-weary consumers. FRL Korea, the joint venture operating Uniqlo in the country, reopened its Dongdaemun store in Seoul this month after a four-year closure, alongside the launch of its largest outlet in Lotte World Mall.
This expansion comes as Uniqlo aims to surpass 1 trillion won (US$760 million) in South Korean sales for the first time in five years, boosted by recovering consumer interest. By November, the company plans to open four more outlets, reflecting confidence in the brand’s resurgence after being hit hard by the No-Japan boycott in 2019.
Despite reducing its store count during the pandemic, Uniqlo’s recent performance has been strong, with 2023 sales rising 30.9% year-on-year. However, competition from local brands such as Topten and Spao, along with new fast-fashion entrants like Musinsa, could temper Uniqlo’s post-pandemic growth.
