Uniqlo is preparing to re-enter Seoul’s Myeongdong, more than five years after exiting the area amid a consumer boycott and the Covid-19 pandemic.
The planned reopening marks a high-stakes effort to regain footing in one of South Korea’s most prominent retail districts, where local brands have strengthened their presence and operating costs have climbed.
According to industry officials on April 29, Uniqlo’s South Korean operator, FRL Korea, is refining plans to reopen a Myeongdong store later this year.
The location has long held symbolic importance for the company. Uniqlo first entered the district in 2007 and expanded in 2011, becoming the first fashion brand in South Korea to surpass about $750 million in annual sales. That momentum reversed in 2019, when a Japan–South Korea trade dispute triggered a nationwide boycott of Japanese products.
A controversial remark by a company executive at the time—suggesting the boycott would not last long—intensified public backlash and accelerated a sharp decline in sales. In the years that followed, Uniqlo posted operating losses and closed dozens of stores, including its Myeongdong flagship, once among its largest globally.
The new opening would mark the company’s third attempt to establish a presence in Myeongdong and is part of a broader strategy to expand customer touchpoints and showcase a wider product range.
The initiative is being led by co-chief executives Takao Kuwahara, appointed in February 2024, and Woo-jae Choi, a former retail executive who joined in November.
The planned store will occupy roughly 34,400 square feet across three floors of the former Le Méridien Seoul. It is expected to feature experiential elements, including a custom T-shirt studio, repair and recycling services, and in-store pickup lockers for online orders.
The move reflects an effort to position Uniqlo not only as a clothing retailer but as a global lifestyle brand in a district increasingly dominated by South Korean labels.
Still, the return carries risks. During Uniqlo’s absence, domestic brands such as Musinsa Standard and Matin Kim have expanded rapidly in Myeongdong, attracting both local shoppers and foreign tourists.
Rents have also surged as vacancies declined following the pandemic. Prime Myeongdong retail rents now average about $130 per square foot annually, suggesting the new store could face yearly rent exceeding $5 million, depending on final lease terms.
For Uniqlo, which has streamlined its South Korean footprint to around 130 stores to improve profitability, the high fixed costs of a flagship location could prove a double-edged sword.
A company spokesperson declined to comment in detail, saying plans for the Myeongdong store remain under review.
