Weekly News Wrap: Fast Retailing opens GU brand store in US; India's Nykaa expects stronger demand from festival season

And leadership issues blamed for Singapore-based Zilingo’s decline.

From Bloomberg:

Fast Retailing will open its first GU store in the US, adding to its Uniqlo shops in the country as the apparel maker seeks a greater presence in the North American market. 

Opening this fall in Soho, New York, the pop-up store will be GU’s first outside Asia, where there are already 450 outlets selling more stylish and trendy apparel aimed at younger customers. Pronounced with the letters G and U, the brand name is a homonym for the Japanese word for “freedom.”

Although the GU store may be temporary, with plans to remain open until summer of 2023, it reflects Fast Retailing’s desire to conquer the North American market. The company aims to have 200 stores there in five years, up from less than 100 now. Sales of GU clothing and accessories totalled $1.9b (JPY249b)—or 12% of Fast Retailing’s revenue—last fiscal year.

READ MORE: UNIQLO launches campaign to urge customer participation in sustainability initiatives

From Reuters:

Indian cosmetics-to-fashion retailer Nykaa said on Friday it expects stronger demand for its products in the current quarter after a 'subdued season' where inflationary pressures dented consumer spending.

The upcoming festival season, which extends till the end of the year, would further boost consumer demand for beauty, personal care and wellness products, that Nykaa said were already showing early signs of recovery.

"We remain cautiously optimistic and believe the season may be good and hopeful of strong demand," Nykaa CEO and Managing Director Falguni Nayar said on a post earnings call, after the last quarter that she defined as a "subdued season".

Nayar had said in May that inflationary pressures had begun to build in the first quarter, but noted that higher food and fuel prices did not dissuade the company's high-end shoppers.

From Reuters:

At first glance, the implosion of vaunted fashion startup Zilingo Pte looked jarringly sudden.

When the Singapore tech darling suspended its 30-year-old chief executive officer Ankiti Bose over complaints about alleged financial irregularities, it was March. Within weeks, creditors were recalling loans, more than 100 staff had left, and Bose found herself fired, though she denies any wrongdoing. The company’s survival is now in question.

Interviews with more than 60 people, including current and former staff, merchants, investors, entrepreneurs and friends of the key players, suggest that Zilingo struggled for years under Bose’s leadership. Bose’s management style alienated employees and undermined the business, according to staff who worked under her.