Uniqlo Returns to Myeongdong, Recovering Sales After Boycott

Uniqlo, which left Myeongdong due to the No Japan movement and the impact of COVID-19, is returning to the area after five years. With an increase in foreign tourists and improving Japan-South Korea relations, the company is set to target Myeongdong with its largest store in the country.

The "Uniqlo Myeongdong" store will officially open on May 22 in the Myeongdong area of Seoul. The store spans three floors and covers a total area of 3,254.8 square meters, making it the largest in South Korea. It will feature a wide range of products for women, men, kids, and babies. Previously, the Uniqlo store at the Lotte Department Store in the same area closed at the end of last month, making the Myeongdong store the flagship location in Seoul's central business district.

On the first floor, a dedicated area for graphic T-shirts, known as the UT (Uniqlo T-shirt) zone, will showcase limited-edition shirts created in collaboration with local businesses like BAF (HBAF) and Eulji Dabang.

The store will also feature a pickup locker zone for customers to collect online purchases. A Uniqlo representative explained, "The pickup locker zone allows customers to collect their online orders at the designated store one hour after purchase, enhancing the integration of online and offline shopping." There will be a total of 54 fitting rooms across the first to third floors, with a separate women's fitting room located near the women's innerwear section on the second floor.

On the third floor, the store will house the third "ReUniqlo Studio" in the country. This area will include a recycling bin for customers to drop off used clothing, as well as a customization service featuring about 100 embroidery patterns and clothing alteration services. Currently, ReUniqlo Studios are also operating at the Lotte World Mall in Songpa-gu, Seoul, and in Daegu's Dongseongro.

Uniqlo's renewed focus on Myeongdong aligns with the area's recovery. The brand experienced a significant drop in sales following the No Japan movement, which emerged during the Japan-South Korea trade dispute in 2019, compounded by the COVID-19 pandemic. Sales plummeted from 1.37 trillion won in 2019 to 629.8 billion won in 2020 and 582.4 billion won in 2021. Consequently, Uniqlo closed its store located near Exit 6 of Myeongdong Station in 2021.

However, recent trends indicate a shift. The number of foreign visitors to South Korea is increasing, revitalizing the Myeongdong area, and consumer resistance to Japanese brands has reportedly eased. Uniqlo's sales are also on the rise. FRL Korea, which operates Uniqlo in South Korea, reported sales of 1.35 trillion won last year, a 27.5% increase from the previous year's 1.06 trillion won.

In response, Uniqlo plans to leverage the Myeongdong store, which attracts foreign tourists, to continue its growth in the domestic market. Takao Kuwahara, co-CEO of FRL Korea, stated, "We expect to provide all product lines of Uniqlo LifeWear and a differentiated brand experience and customer service to both Korean customers and global visitors, making Myeongdong a new landmark."