Shopping Centers Today -> May 2007
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ASIAN DECOR CHAIN MUJI PLANS U.S. DEBUT

The New York Times Corp. plans to revitalize Manhattan’s gritty Eighth Avenue corridor when it opens its glittering new headquarters on 41st Street, adjacent to the Port Authority Bus Terminal. And the company has chosen Muji, a Japanese seller of furniture, clothing and household goods, as the tenant for the building’s street-level retail space.

The 5,000-square-foot store will be Muji’s U.S. flagship. Tokyo-based Muji, a division of diversified company Ryohin Keikaku, posted $1.3 billion in sales worldwide last year and is a household name throughout much of the world, with 137 stores in Japan and 69 more elsewhere in Asia and in Europe. Muji plans to open about five more stores in Manhattan over the next two years and 30 across the U.S. within five years, says Hiroyoshi Azami, president of Muji U.S.A. “The U.S. is the crucial and largest market for Muji,” said Azami. “This is the market we must not lose.”

The company anticipates yearly sales at the new store of between $3 million and $6 million, Azami says.

Some label Muji the Japanese Ikea, but Azami rejects the comparison. Muji does not consider Ikea a competitor and says it is not threatened by the Scandinavian retailer’s U.S. growth trajectory. Muji’s full name, Mujirushi Ryohin, translates as “no-brand quality products,” and that is exactly what the chain hopes will attract U.S. customers. The store offers simple, generic clothing, cosmetics and stationery, in addition to furniture and housewares. The products are designed not to harm the environment. Rock-bottom prices and an extensive inventory of over 7,000 items have built Muji a cult following. The design of the new flagship will reflect minimalist principles.

“There will not be Japanese design elements in the New York store, but concepts of Muji will be incorporated,” Azami said. The same goods sold in Tokyo will sit on the shelves in New York.

Takashi Sugimoto, principal and founder of Tokyo-based design firm Superpotato Co., who is known for his minimalist, earthy motifs, will design the store. The opening is set for this fall.

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