Chinese retailer Miniso Group plans to open a flagship store in New York and aims to nearly double its outlets in the US this year, gambling on increasing post-pandemic budget-conscious shoppers.
Miniso has lesser than 60 outlets in the US and its presence is dwarfed by giant low-price retailers like Dollar Tree as well as its home base of almost 3000 stores.
Miniso says that it’s moving quickly to take the benefit of slashed rentals in the US market post-pandemic. According to Vice President overseas business, Vincent Huang told Reuters that he ultimately sees potential for thousands of stores in the United States.
This plan highlights the leaping ambition of the Miniso Group which was founded eight years ago in Guangzhou. It now spools about $1.4 billion as its revenue per year and is listed in NY with a $4 billion market value.
The expansion has come at a pivotal time for malls across the US, with many retail names having surrendered to the cutting downturn in sales due to the onslaught of the Covid-19 pandemic.
With about 4800 stores across the globe in over 90 countries, Miniso will now have 54 stores in the US by the end of this year. Miniso started with 30 stores in the United States.
The new stores include the opening in Tangram Mall, NY by November. The area is known for its vibrant Asian-American community. According to Huang, the expansion costs in the United States have reduced by about 20 percent primarily due to slashed rentals and pandemic has made it easier to secure good locations. He added that, North America is their strategic market.
Miniso describes itself as the Japanese fast fashion designer brand and in the past, it has been compared to the Muji Chain which was operated by Ryohin Keikaku, a Tokyo-listed firm.
Last month, Miniso reported that it booked about 20 percent of its overall revenue for the FY ended June from its 1800 overseas stores in countries such as India, Indonesia, and Mexico. However, it did not disclose its exact sales numbers for the stores in the US.
According to Huang, the sales in the United States have recovered to pre-Covid levels and claim that they have become more popular than ever since the pandemic.