Yanai Tadashi's latest retail gamble has apparently paid off. The chairman of Japanese fashion chain Uniqlo picked Seoul to launch his flagship store in Asia and has seen record sales accumulate since the store opened this month.
The outlet is located in the downtown shopping district of Myeong-dong, which boasts the most expensive real estate prices in the country. The flagship set a new record for daily sales by logging W1.3 billion in one-day sales on its opening day on Nov. 11 (US$1=W1,131).
Sales totaled W3.6 billion over the first three days, with 120,000 shoppers passing through its doors during that period.
Consumers had to wait for more than four hours to buy Uniqlo's trademark HeatTech clothes, which were put on display at the discounted rate of W9,900 a piece during the sale period.
Previously, a Chanel store at the Shinsegae Department Store in the affluent Gangnam area south of the Han River held the record for daily sales at a single store, logging W460 million on its opening day in July.
Uniqlo's new store is 3,966 sq.m in area, making it the company's second largest after the outlet on New York City's Fifth Avenue that opened last month.
When asked why Uniqlo opted to launch its biggest Asian store in Myeong-dong and deal with exorbitant rental prices while selling discounted apparel, Tadashi said he was convinced the venture would turn a healthy profit because location is everything.
"The high real estate prices demonstrate how popular the area is for shoppers and that it is a great area for business," he said.
Uniqlo signed a 15-year contract to rent the Fifth Avenue store for $300 million, setting a new record in New York City rental prices.
