Retail in Asia

In Sectors

Japanese retailer Uniqlo dips its toes in Canada’s cutthroat retail sector

uniqlo-retail-in-asia

When Japanese apparel retailer Uniqlo decided to open its first location in Canada, it sent Yasuhiro Hayashi to Toronto every month for nearly a year to get a read on the Canadian customer.

During each visit, Uniqlo Canada’s chief operating officer would spend the week taking notes on what people wore.

Unlike competitors that aim for a particular demographic, Uniqlo is hoping its appeal-to-all business model will succeed in a cutthroat industry that has laid waste to some fashion retailers, such as Aeropostale and Danier Leather.

The company opened its first store in Canada last Friday, a 28,000-square foot space in the Toronto Eaton Centre wedged between fast-fashion rival H&M and the newly arrived luxury retailer Nordstrom. A second store opening is planned for Oct. 20 at Yorkdale Shopping Centre in north Toronto.

SEE ALSO: Uniqlo sets up for Southeast Asia expansion

Even with more than 1,000 stores worldwide, Hayashi acknowledges Uniqlo may not have the same name recognition in Canada that some of its international rivals had before entering the country.

It’s one of the challenges it will have to overcome if it wants to continue expanding in Canada, something Hayashi says he would like to do but is in no rush to. It also doesn’t have any plans to offer e-commerce in Canada.

Another challenge Uniqlo will face is generating customer loyalty, said retail expert Brynn Winegard.

“The Target lessons that we learned is that we don’t want you to come and tell us about us. We want you to be authentically and indigenously you,” said Winegard of retail consultancy Winegard and Company.

Customers can expect a bigger than usual selection of plaid and flannel shirts. Most sizing will be for a North American fit, but there will also be some smaller sizing to reflect Toronto’s multicultural population. Uniqlo will also sell house slippers, which is commonplace in its Asian locations.