A national obsession with Japanese culture is currently at an all-time high in the United States. For example, “kawaii” (cute) items are extremely popular with American shoppers today, including the plush “squishable” character toys and Hello Kitty trinkets. Other Japanese trends that U.S. shoppers cannot seem to get enough of include Manga comics, anime art/figurines, Nintendo games, fashionable Japanese streetwear, mochi desserts and even sushi itself. Stores that carry imported Japanese items are in the midst of an expansion boom not only because authentic merchandise from the country is trending, but also because these items tend to be reasonably priced, which is perfect for those quick impulse buys. Consequently, look for Daiso, UNIQLO (and its offshoot brand GU), Ebisu Life Store and Teso Life and to all be seeking new retail spaces nationwide.
Daiso recently doubled its store opening forecast goals, upping its expected new unit growth for 2023 from 15 stores to 30 stores. From 2024 and beyond, that number is anticipated to increase to 35 to 45 new store openings per year over a period of 15 to 20 years. Look for immediate expansion to take place in Arizona, a new state for the brand, in addition to continued growth throughout Northern California, New Jersey, Hawaii, Nevada, New York City and upstate New York, Washington state, Houston and Austin.
The Daiso brand looks for 5,000- to 10,500-s.f. space in power centers, strip malls, lifestyle centers, indoor malls and urban street-front sites, including the ground floor of mixed-use buildings. Daiso is open to both downtown metro locations and suburban sites alike. Co-tenants can run the gamut, from Asian-brand grocers, such as H Mart, to high-traffic stores such as PetSmart and Michaels. Daiso expects to increase its presence in new markets, even those without a large Japanese/Asian population, because its merchandise consists of Japanese items priced in the popular “dollar store” concept, with products between $2 and $15. The brand also stands out because it has a huge Japanese inventory of 100,000+ items (beauty supplies, pet items, snacks, electronics, toys, crafting supplies, school stationary, holiday decorations, kitchen utensils, cleaning supplies, etc.), and refreshes its shelves with 1,000 new products every month.
UNIQLO’s parent company, Fast Retailing Co. Ltd., is investing in expanding the fast-fashion clothing brand throughout the U.S., with the goal of opening about 30 stores per year over the next five years. The UNIQLO chain wants to focus on markets situated just outside of the urban locations where it currently has a presence, such as the suburbs of Orlando, Fla., Seattle, Washington, D.C., New York City and Philadelphia. UNIQLO aims to expand into new markets as well, with rumored territories being eyed to include San Diego, Miami, Tampa, Fla., Atlanta, Phoenix/Scottsdale, Las Vegas, and the metros of Texas, especially Houston. The brand seeks space in the 7,000- to 13,000-s.f. range in regional center malls, open-air lifestyle centers and retail street-front spaces that attract the upper middle-class shopper. Preferred co-tenants include other foreign fast-fashion brands, such as ZARA, or Asian-themed eateries, such as Meet Fresh. The Japanese-native UNIQLO sells affordably priced casual clothing and accessories culled from various Asian manufacturers.
In October, UNIQLO opened its first U.S. GU store — its sister brand that features trendier, more budget-friendly clothing and accessories — with a 2,900-s.f. pop-up shop in the SoHo neighborhood of New York City. If it proves to be successful, then GU expects to move into a larger space in NYC, between 8,500 and 9,000 s.f., and to expand the concept throughout the country, preferably in side-by-side locations with its current UNIQLO stores.
The brand even hinted that GU might open up to 500 stores in the U.S., which is a higher number than its goal of having 200 UNIQLO stores in the country. There are currently 450 GU shops in Japan, and the Fast Retailing/UNIQLO team expects the store to do especially well in large urban retail street-front sites with a diverse population.
Ebisu Life Store is a fairly new Japanese-imported convenience shop entrant in the states, having opened its first location in Aurora, Colo., in 2021. There are now seven units spread throughout the NYC metro, Maryland, and even in the Mall of America in Bloomington, Minn. Future stores are expected in 2023 to pop up along various East Coast, Midwest and Southern markets, notably in the American Dream mall in East Rutherford, N.J., as well as in Orlando, Fla., Washington, D.C., Raleigh, N.C., Stamford, Conn., Philadelphia, Little Rock, Ark., Dayton, Ohio, Dallas and Houston. Expect growth in 2024 and 2025 to continue on this trajectory, with approximately 10 to 15 stores expected to open per year. Also anticipate yet more markets to be eyed in the West, such as Las Vegas, Phoenix, and the metros of Northern and Southern California.
Ebisu seeks space in the 5,000- to 6,000-s.f. range, inline or end cap, in urban retail street fronts, indoor malls and strip centers. Co-tenants can include other high-traffic Japanese and/or Asian-themed tenants, including eateries such as Kura Sushi and Sencha Tea Bar, but that is not a necessity; for example, its upcoming American Dream location will be near Ulta Beauty, Primark and Best Buy. Ebisu is known for carrying a unique mix of Japanese imported goods, including higher end items such as jewelry and clothing, as well as housewares, toys, gifts, drinks, snacks, detergents, cosmetics, office items and gardening supplies.
Teso Life expects to open between five and 10 new units per year over the next two to three years. Look for expansion to be in areas with a growing Asian population, especially within Howard County, Md., Phoenix and Atlanta. Continued growth will also occur in the New York City metro and its outlying regions, including in Long Island and New Jersey, in addition to more units in Texas, mainly in the Houston and Dallas metros. The brand seeks a wide range of inline or end cap options that are anywhere from 6,000 to 14,000 s.f., depending on whether the site is in a limited space urban location or a larger space suburban location. Sites can be on urban retail street fronts, suburban neighborhood community centers or grocery-anchored power centers. Preferred co-tenants include Asian-themed grocery brands, such as 99 Ranch Market, or Asian-themed eateries, such as 85°C Bakery Café. Space needs to have great visibility and ample parking available. Teso Life is a convenience/department store concept that sells premium Japanese items that are affordably priced, including snacks, beauty products, housewares and toys.
