Behind the rise of GU: The Uniqlo offshoot loved by millennials and Gen Z is the latest cool-kid brand

• GU, a sister brand of Uniqlo, launched in the US last year.
• The fast-fashion brand targets Gen Z with stylish, affordable clothing. 
• The brand sells basics like T-shirts as well as trendy pieces like cargo pants.

Right down the street from Uniqlo's Broadway store in New York City's bustling Soho neighborhood is GU — a smaller, nearly identical shop that's been getting a lot of attention on TikTok lately.

GU was created in 2006 as a sister brand to Uniqlo geared toward Gen Z shoppers. But plenty of millennials shop the brand too.

Julissa Degante, 30, and Felix Garcia, 35, went to the Soho pop-up for the first time this month after discovering the brand on Instagram. They purchased jeans and button-down shirts for work and going out.

"The vibe was very mellow," Garcia said. "It's wide-range and just caters to everyone."

"The quality of the clothes looked great right away," Degante added.

GU, which is owned by the Japanese retailer Fast Retailing Group, has grown to nearly 450 stores in Asia but didn't enter the US market until it opened its Soho store in October 2022. From September 2021 to August 2022, GU's sales totaled $1.7 billion which made up about 11% of Fast Retailing's revenue, Retail Dive reported.

GU's name is pronounced as just the letters, meant to sound like the Japanese word "jiyu," which means freedom. Much like Uniqlo, GU carries basics like logo-free t-shirts, simple sweaters, minimalist shoes, and dressy-casual pants. However, GU's prices are slightly cheaper than Uniqlo's. For example, a men's open-collar shirt costs $19.90 at GU, while a similar style goes for $39.90 at Uniqlo.

GU is where Chris Why, 34, gets his basics, like the tank top he picked up on Wednesday. "I just needed something inexpensive but nice quality," he said. He likes to wear designer clothes, but prefers to save money on simple shirts he can pair with them.

"You go to Forever 21," he said as he pointed to the store across the street. "You might get a nice shirt, but it will say 'Undefeated' on the back. Here, it's just plain simple stuff."

Another trait that sets GU apart is that it appears to be more sensitive to fashion trends than its sister brand. While Uniqlo's range of styles remains fairly consistent from season to season, GU switches up its offerings to capitalize on major fashion trends and pop culture moments to cater to a younger shopper.

One of the brand's most popular items is its super-wide cargo pants, a must-have for many Gen Zers, as the '90s skater look has alley-ooped back in style. You'll also find dainty button-down cardigans for women, long cargo skirts with drawstrings, low-waist baggy pants, and faux leather bucket hats. For those who are inspired by Hulu's hit show "The Bear," there are GU's "chef" pants, an elastic-waist trouser that also comes in shorts.

Save for a "Malibu Beach Surf Club" cropped tee, you won't find the Barbiecore or mini skirts you'll see on Shein or Temu. GU may be a fast-fashion retailer in step with the latest trends, but most of its clothes stay true to its minimal Japanese roots with conservative silhouettes and neutral colors.

The Soho location is the only store in the US, and right now the only way US customers can shop GU is in-store. The brand's website is a catalog of its latest styles, but the company doesn't currently ship to the US. Fast Retailing plans to open 200 stores in North America within five years, Japan Times reported.