(image: Fast Retailing Co.)
SEOUL, Jul. 19 (Korea Bizwire) — Fast Retailing Co., which owns Uniqlo, is set to launch the first Korean store of its budget brand, GU, this year as the Japanese retailer moves to expand the smaller chain’s presence in the global market, the company said Thursday.
Launched in 2006, GU currently has 374 stores in Japan with 19 overseas outlets in China, Hong Kong and Taiwan.
“We have long been thinking that entering South Korea, which is very fashion-conscious, is an inevitable step for us,” GU CEO Osamu Yunoki said during a press conference in Seoul.
GU said it plans to launch its Korean online store on Sept. 1 before opening the 1,388-square-meter outlet at Lotte World Mall in eastern Seoul on Sept. 14.
GU said it hopes to emulate the success of Uniqlo in South Korea, which has grown to 186 stores across the country since opening its first South Korea store in Seoul in 2005.
In the 2017 fiscal year, GU reported 199.1 billion yen (US$1.77 billion) in revenue with 13.5 billion yen of operating profit. While sales were up 6 percent on-year, operating profit was down 39 percent during the cited period due to a fall in the gross profit margin owing to lower-than-expected sales, it said.
(Yonhap)
