Japanese clothing brand GU, a subsidiary of Fast Retailing and sibling to Uniqlo, has opened its first U.S. office in New York to spearhead its expansion in the country. This move coincides with the opening of GU’s first permanent U.S. store, also in New York, as the company aims to grow its presence in Western markets.
The new headquarters will focus on product development, marketing, and store design as GU seeks to gain traction in the U.S. and beyond. Despite generating ¥300 billion (US$2.13 billion) in revenue in 2023, the brand has largely been confined to Japan and other parts of Asia, with only 10% of sales coming from overseas.
GU aims to boost global sales to ¥1 trillion ($7.1 billion) and sees expansion in the Americas and Europe as key to reaching that goal. However, the U.S. apparel market has contracted slightly in recent years, making the company’s challenge more complex. Yet, with inflation reshaping consumer spending, GU’s affordable pricing—around 30% lower than Uniqlo—could appeal to cost-conscious shoppers.
