Amid Daiso’s thicket of colorful stationery, chair socks and gaudily packaged snacks, a winning retail strategy can be found. The Japanese low-cost retailer, which built its brand on its ¥100 (about $0.70) offerings, is a household name in its home market, but it is now facing the question of whether it can translate this success for the U.S.
Established in the 1970s, Daiso Industries had more than 4,000 stores across Japan as of last year, and it has expanded into 25 countries and regions.
While Daiso originally entered the U.S. in 2005, it has scaled these efforts up over the past few years — the retailer now has about 120 stores across seven states, with more in the cards. In contrast to the Japan model, prices — although low, starting at $1.75 or $1.99 depending on the state — fluctuate somewhat.