(CapitalWatch, Sept. 14, New York) Chinese brand Miniso (NYSE: MNSO) continues to aggressively pursue international expansion and now prepares to open a flagship location in New York despite the uncertainty over consumer spending amid a resurgence of Covid-19.
Just two weeks ago, the retailer announced the opening of its 36th store in Spain, the latest one located in Seville. That closely followed the flagship shop launch in Oxford, U.K., and another in Sardinia, Italy. Now, as Reuters reported Tuesday, Miniso is opening its main store in New York.
The expansion comes at lower costs as the pandemic has slowed offline retail and the rent at malls has declined. Planning to reach 54 locations in the United States by the year-end, Miniso hopes to eventually grow its U.S. chain to "thousands" of stores, as overseas vice president Vincent Huang told Reuters. Miniso has been present in the United States since 2017.
In a recent announcement, Miniso said it had "jumped at the opportunity brought about by massive business shuttering during the height of the pandemic, which has allowed the company to open new stores at premium shopping destinations."
Next month, Miniso celebrates its one-year anniversary of being publicly traded on Wall Street. In October 2020, the Tencent-backed company raised $608 million in its initial public offering, making it one of the largest Chinese listings of the year in New York amid the tense Sino-American relations. Since the IPO, shares in MNSO are down 43% to $13.11 apiece.
Based in Guangzhou, Miniso sells stationary, cosmetics, textile, and beauty products, as well as toys, home décor, electronics, snacks, and accessories. It styles its products after the world-popular Japanese Muji brand, created by Tokyo-listed Ryohin Keikaku Co. Ltd., which centers on minimalism, eco-friendliness, natural textiles, quality, and the absence of a brand.
In the domestic market, Miniso operates about 3,000 stores. Huang has said that its sales have recovered to pre-pandemic levels. In addition to offline expansion, Miniso has launched online campaigns and added fun budget products for homes and work.