Uniqlo Disappeared from Myeongdong: The Hidden Strategy Behind It

Walking through Myeongdong, the shopping mecca of South Korea, it has become difficult to find Uniqlo stores that were once common sights. Just a few years ago, a large Uniqlo store was located in the heart of Myeongdong, but now it has disappeared. This is not just a simple withdrawal but part of a meticulous strategic change.

Meticulous Strategic Change

The 2019 boycott of Japanese products and the subsequent COVID-19 pandemic dealt a significant blow to many fashion brands, including Uniqlo. The Myeongdong business district, which heavily relied on foreign tourists, was particularly affected. In this situation, Uniqlo made the bold decision to significantly reduce the number of its offline stores.

The Paradox of Reducing Stores While Increasing Sales

Interestingly, despite the reduction in stores, Uniqlo's sales actually increased.

For the fiscal year 2025 (September 2023 – August 2024), Uniqlo Korea's sales reached 1.06 trillion KRW, marking a 15% growth compared to the previous year. This figure signifies the recovery of sales exceeding 1 trillion KRW for the first time in six years.

Behind this achievement was a strategic decision of "selective focus." Uniqlo decisively closed down low-profit small stores and shifted its focus to investing in larger stores. In reality, Uniqlo reduced its domestic stores from approximately 190 in 2019 to about 140 as of 2023, but the average size of each store actually increased.

Strategic Decision of "Selective Focus"

As of March 2025, Uniqlo Korea operates 131 stores nationwide.

Synergy Strategy Between Online and Offline

Another factor contributing to Uniqlo's success lies in strengthening its online channels.

In line with the non-face-to-face consumption trend driven by COVID-19, Uniqlo actively entered not only its own online store but also major e-commerce platforms such as Naver and Coupang.

Through this approach, Uniqlo was able to expand consumer touchpoints despite the decrease in offline stores.

Notably, Uniqlo did not simply increase its online sales channels but also built an omnichannel strategy to maximize synergy between online and offline channels. It introduced a service allowing customers to pick up or return products ordered online at nearby offline stores, thereby enhancing customer convenience.

Maximizing Synergy Between Online and Offline Channels

A New Leap for Uniqlo in 2025

Uniqlo plans to continue optimizing the number of its domestic stores by 2025 while increasing profitability per store.

According to industry reports, Uniqlo is expected to consolidate its existing small stores into large flagship stores while strategically opening new stores in areas with potential based on market analysis.

Moreover, Uniqlo is making efforts to evolve from being merely a clothing retailer into a lifestyle brand.

Recently, it has also invested in developing sustainable materials and environmentally-friendly production methods, actively responding to the value-driven consumption trends of the MZ generation.

Lessons from Uniqlo Turning Crisis into Opportunity

The phenomenon of difficulty in finding Uniqlo stores in Myeongdong is not a simple decline but a strategic choice to respond to the changing consumption environment. Despite facing the dual challenges of the boycott and the pandemic, the reason Uniqlo was able to grow lies in its flexible thinking that turns crisis into opportunity.

The case of Uniqlo, which has increased sales while reducing the number of offline stores, shows that qualitative growth is more important than mere quantitative expansion. Additionally, it reaffirms the importance of strategies that maximize synergy between channels in a retail environment where the boundaries between online and offline are blurring.

It will be interesting to see how Uniqlo continues to respond to changing consumption trends and grow in the future.

Though it has become harder to find in Myeongdong, it seems that Uniqlo's presence is ironically becoming larger.

Image source: Uniqlo Myeongdong Central Store / News1, Photo = Insight, Photo Provided by = Uniqlo