How Uniqlo’s functional clothing has won over the U.S.​on February 11, 2025 at 3:34 pm

Uniqlo is growing in the U.S. as its functional clothes at a reasonable price point win over consumers.Uniqlo is growing in the U.S. as its functional clothes at a reasonable price point win over consumers.   

Uniqlo is catching on in the U.S. — and it may have more room to grow.

With a market capitalization of roughly $100 billion, Uniqlo’s Japanese parent companyFast Retailing is one of thelargest retailers in the worldbehind Zara’s owner, Spanish company Inditex.

Uniqlo has been able to grow thanks to what experts say is a minimal, functional design at an affordable price point for many consumers.

“They have a nice twist of fashionability which makes them unique and interesting. They’re also very good value for money,” says GlobalData Retail managing director Neil Saunders. “The clothes are generally good quality, they last a long time and the price points are very reasonable, and all of those things really resonate with the American consumer.”

However, the Japanese retailer faces challenges as ittries to reach 200 stores in the U.S. by 2027, up from 69 locations now. The space is competitive as more apparel retailers from around the world gain a foothold in the U.S.

The company also has room to grow its e-commerce operations, where Uniqlo lags many of its rivals.

“A lot of other brands have taken on the digital journeys, and it’s not something that Uniqlo had done from from a very early stage, because they have been centered around the physical bricks and mortar stores. So they also need to make sure they always stay into the digital space,” says McKinsey senior advisor Martin Roll.

Watch the video above to learn more about why Uniqlo is expanding in North America and what exactly sets the brand apart from peers in the saturated retail industry.