What to know about GU, Uniqlo’s Gen Z-centric sister store with global aspirations

Most Americans are familiar with Uniqlo, the Japanese casual wear retailer best known for its high-quality basics and neutral color palettes. Fewer are likely to have heard of GU (pronounced as the letters “G” and “U”), Uniqlo’s trendy, Gen Z-centric sister store that’s been a staple in Japan since 2006. Now, the store is opening its doors in the U.S. for the first time, complete with new sizing and exclusive colors tailored for the American consumer. GU is operated by Uniqlo’s parent company, Fast Retailing. It currently runs around 470 stores in Asia—primarily in Japan—with e-commerce options in several other locations. On September 19, GU officially arrived in the U.S. with a 10,000-square-foot flagship store in Soho and a new American e-commerce site. Yesterday, the brand also announced a new 22-piece womenswear collection with the fashion brand Rokh, which will debut with several colors exclusive to U.S. consumers. [Photo: GU]And it looks like we’ll be seeing more of GU in the future. According to reporting from Modern Retail, GU accounted for 11% of Fast Retailing’s revenue between September 2021 and August 2022. And in a 2023 interview with Nikkei, GU CEO Osamu Yunoki shared that the company “[plans] to double our sales to 600 billion yen ($4.08 billion) in five years,” ultimately aiming to become a global fashion brand through overseas expansions. Here’s everything you need to know about GU before you place an order.[Photo: GU]What is GU’s retail approach? According to a spokesperson, GU focuses on “affordability and trend-driven styles.” The brand appears to be tapping into younger consumers’ current obsession with microtrends, a byproduct of the ongoing domination of fast fashion sites like Shein. Unlike Shein, though, GU hones in on a few trends each season and executes them well for a reasonable—albeit not dirt-cheap—price.[Photo: Pablo DiPrima/GU]“GU differentiates itself by taking a different approach to other global fashion brands in the same price range that sell a huge variety of styles by offering less than one-tenth the number of items,” GU’s spokesperson tells Fast Company. “By reducing the number of products and narrowing down the range to the essential items that customers actually want and use, GU dramatically increases the efficiency of the entire supply chain, including material procurement, sewing, distribution, sales, and supply-demand coordination—resulting in high quality products at low prices.”[Photo: GU]What is GU’s aesthetic and who is its target consumer?Just from skimming through its offerings, it’s pretty clear that GU is marketing itself to a younger crowd—mainly Gen Z and Gen Alpha. Items like the best-selling, TikTok-approved $39.90 barrel leg jeans (a sort of modern take on the ‘90s baggy jean; watch out JNCO) and $30 pleated skort are obviously playing into the resurgence of y2k fashion, and there are also $29.90 flats to complete any balletcore ensemble. [Photo: Pablo DiPrima/GU]GU is turning viral TikTok trends into products using Fast Retailing’s existing supply chain, which “allows GU to stay ahead of fashion trends and to consistently deliver fresh, relevant products to the market,” per the spokesperson.The brand has a clear focus on silhouettes and layering—and, like at Uniqlo, neutral colors including white, black, and tan are favored over bright colors and statement prints. “We capture the mass trends of the times and create a special selection of items that combine fashionability, practicality, and reliable quality all at an affordable price and we present them for all people in an easy-to-understand manner,” the spokesperson says.[Photo: GU]How does GU differ from Uniqlo?Uniqlo is beloved for its office-friendly business casual essentials, from trousers to blouses and blazers. While GU’s garments also demonstrate a focus on tailoring, its styles are based more on trends than timelessness, meaning they might not last quite as long in your wardrobe. [Photo: Pablo DiPrima/GU]“Uniqlo offers high-quality, functional basic apparel, while GU offers items that capture the mass trends of the times at reliable quality and affordable prices,” GU’s spokesperson explains. GU is also somewhat less expensive than Uniqlo, with pieces ranging from $4.90 to $99.90. By comparison, some of Uniqlo’s outerwear can go up to the mid-$100s range.[Photo: GU]Are GU’s offerings in the U.S. different from those in Japan?In the fall of 2022, GU opened a pop-up shop in Soho that tested out its offerings with American consumers. In an interview with Refinery 29, Yunoki shared that the brand spent the following two years adjusting its original sizing and adding more gender-fluid styles in response to the pop-up’s initial feedback. The brand also established a product development hub in Manhattan to identify and track globally trending styles.[Photo: Pablo DiPrima/GU]Aside from some tweaks to styling and sizing (as well as a few U.S.-exclusive colorways), GU’s overall approach is consistent across its stores. “GU is very practical,” Yunoki told Refinery 29. “People are really busy—they have no time to think about fashion all the time—and aren’t spending as much money as before on fashion.”