Daiso, the Japanese low-cost retailer known for its colorful stationery, unique gadgets, and low-budget snacks, is looking to expand its presence in the United States.
Since entering the U.S. market in 2005, Daiso has steadily grown its footprint and now has approximately 120 stores across seven states, with recent store openings in Arizona and California. The company plans to open a new store in Houston this month.
Dani Davis, vice president of marketing for Daiso’s U.S. division, says the expansion has been largely influenced by a strong social media presence, with the company receiving numerous requests from individuals urging them to open stores in their area. A page on its website even lets shoppers suggest locations for future store openings.
Founded in the 1970s, Daiso’s business model is based on its ¥100 (approximately $0.70) pricing strategy. The retailer had 4,000 stores across Japan as of last year and its global reach extends to 25 countries and regions.
Most of its merchandise is priced at $1.75, with select higher-end products reaching up to $15.25.
Adding to its distinctiveness, Daiso marks prices in yen, retaining an authentic Japanese touch within its U.S. operations. The retailer also upholds a stringent return policy, permitting only “change of mind” returns within 30 days of purchase, subject to specific conditions.
The expansion goes against a recent trend of discount brands scaling back on brick-and-mortar. In March, Dollar Tree announced that it will close roughly 600 Family Dollar stores in the first half of this year, although the company still operates more than 16,000 locations nationwide.