Global Work, part of the Adastria group, is set to open a new flagship store in Ginza, reflecting a strategic shift from suburban growth to urban markets and aiming to attract tourists.
Global Work, a brand under the Adastria group, is set to make a significant move by opening a new store at Marronnier Gate Ginza 3, located directly across from UNIQLO’s global flagship store, UNIQLO TOKYO, and near MUJI Ginza, the premier global store for MUJI. This decision to venture into a prime urban market, particularly Ginza, is notable given Global Work’s history of expansion primarily in suburban areas.
Founded in 1994, Global Work is poised to celebrate its 30th anniversary in 2024. The fiscal year ending February 2024 is projected to see a record-high sales figure of 51.6 billion yen, comprising about 20% of the Adastria group’s overall sales. This figure represents substantial growth from the 33.8 billion yen recorded in the fiscal year ending February 2021, during which sales were negatively impacted by the COVID-19 pandemic. The company’s growth trajectory reflects an increase of approximately 1.5 times, with ambitious plans to reach 100 billion yen in sales by February 2030. This goal rests on strategies that include “renewing the brand message,” “core product strategy,” “aggressive new store openings and expansions in domestic markets,” and “international strategies.” The sales goal is divided into 90 billion yen in domestic sales and 10 billion yen in foreign markets.
The Ginza store represents an essential step in Global Work’s plans to tap into urban demographics and attract inbound tourists. With the first-year sales target set at 1 billion yen, the company aims for inbound sales to constitute 50% of its revenue from the store, leveraging the area’s appeal to international visitors. The store will implement several new initiatives, such as multilingual signage and specialized product displays aimed at tourists, enhancing the shopping experience for a diverse clientele and reflecting preparation for future overseas expansions.
Currently, Global Work operates 218 stores domestically and 20 internationally, with a predominant presence in suburban shopping malls. The Ginza store is seen as a catalyst for capturing urban demand and contains plans for expanding retail strategies, including increasing the number of products on display and optimizing store layouts. The company envisions implementing these innovations to improve sales per store while streamlining staffing efficiency, ultimately aiming to expand to 270 domestic locations by 2029.
As part of its broader strategy to enhance international sales, currently projected at 2.5 billion yen for 2024, Global Work is looking to strengthen its retail footprint in the ASEAN market, where significant growth is anticipated, particularly among younger consumers. Countries such as Thailand and the Philippines are on the company’s radar for entry by 2025, building upon positive sales experiences in Taiwan, where its Lalaport Taipei Nangang location has reportedly performed exceptionally well.
Sales Division Chief Kun Ohta acknowledged the difficulties Global Work faces in competing with established names like Uniqlo and Muji but suggested the brand possesses a unique blend of moderate fashion and functionality, encapsulated in their ‘3F’ approach: Fashion, Function, and Feeling. Ohta expressed, “We are still in a position where we cannot compare ourselves to those brands, we are chasing them… we will design our stores and promotions to convey this appeal internationally.” By enhancing brand visibility through the Ginza flagship store, Global Work aims to foster local and international recognition, ultimately enhancing the brand’s credibility for future overseas markets.
With this strategic shift, Global Work seeks not only to bolster its domestic sales but also to pave the way for a stronger international presence, effectively utilizing its flagship store in one of Tokyo’s busiest districts to drive its expansion objectives.
Source: Noah Wire Services
