Japanese lifestyle retailer Muji is bringing its innovative, high-quality and design-led product offering to more Australian consumers with the recent opening of its latest store in the country, at Highpoint shopping centre in Melbourne.The expansion reflects the brand’s efforts to solidify its position within the local market, with additional store openings on the horizon to close out 2024.These new store openings are expected to drive a 50 per cent year-over-year increase in revenue for Muji Australia in FY25.Takuya Saito, managing director of Muji Australia, spoke to Inside Retail about the company’s plans to grow its bricks-and-mortar presence in Australia and the strategy behind it.Inside Retail: What was the rationale behind choosing Highpoint Shopping Centre in the western suburbs of Melbourne for your new store?Takuya Saito: Well, we looked for expansion opportunities and we already had a store in Chadstone. We received a lot of customer feedback asking us to open a store in the western suburbs. That’s why we decided to open the store in Highpoint to cover the west side [of the] market.We now have four stores across Sydney and Melbourne, and by the end of the year we plan to have six.Highpoint is just the beginning of our expansion Journey.IR: You are expecting 50 per cent year-on-year revenue growth in Australia in FY25. What are the key drivers behind this significant growth?TS: Our sales increase comes from opening a new store and increasing our range in this store, meeting customer demand with the introduction of Muji’s food range. That features traditional Japanese food items from local independent producers, such as snacks, chocolate and packed curry. This food range significantly increased [our sales] growth and brought in new customers.Food is an essential item that people need daily, so this was a good opportunity to get customers to come into the Muji store more often.IR: Muji is known for its community-orientated approach to engaging customers. How do you plan to integrate these initiatives into store rollouts Australia-wide?TS: Muji wants to be a platform that connects people, so through the community markets we can provide floor space to the local community and invite local vendors or artists.The purpose is not to generate Muji customers but to contribute and support the local community and offer an enhanced in-person brand experience,At Highpoint, we sell items such as salt and miso chocolate, which are not Muji items. We are exploring stocking more local vendors’ items to support local small businesses more.IR: What are Muji’s expectations for the pop-up event at Highpoint?TS: Muji is a retailer that aims to [help] customers improve [their] lives and environment through the products we stock and the ideas.Product packaging is simple and designed minimalistically to reduce rubbish and our products are made with minimal waste.Through the pop-up events, we want to introduce the Muji concept and philosophy to Australian customers.IR: Muji’s design philosophy centres around simplicity and quality. How do you ensure that philosophy remains consistent across new markets?TS: The pop-up is one of our actions to introduce and communicate Muji’s philosophy.We are trying to improve the overall customer service through our staff.All Muji staff are our brand ambassadors who communicate to customers the Muji philosophy personally, not from the PLP [product listing page] or package.IR: Sustainability is increasingly important to customers. Can you elaborate on the importance of sustainably sourcing Muji’s hemp and linen materials?TS: The new Highpoint store will feature a curated selection of the latest seasonal apparel, including sustainable and ethically sourced pieces made from natural hemp, linen and kapok [a cotton-like fibre obtained from the seed pods of a certain type of tree].Hemp and linen are very important materials for Muji. They are good for the environment and have longevity.IR: How is Muji balancing maintaining traditional Japanese cuisine elements and catering to Australian tastes and preferences?TS: We are now in a testing phase, to learn what kind of food is fit for the local market. Now we are introducing many Japanese foods, such as curry or chocolate.Customers can shop an expanded food range, featuring 10 new items such as organic drip coffee, chocolate snacks, and new curry flavours. People are very busy, so that’s why Muji’s packaged food can support their busy lifestyles in offering a quick and easy-to-prepare meal.IR: Will there be a dining hall in the new Australian store concept? TS: We haven’t launched a cafe restaurant yet, but in the future, we are planning to introduce a Muji cafe, which will deliver local food and a place to relax in the stores.So it is not just a space to enjoy shopping, but [also offers] food and communal space.IR: What is the timeline for this? TS: We are planning to introduce a flagship in the next three years.But we are still [in the process of] finding a space. So I can’t say an exact year now.IR: Muji has been incredibly successful in Australia. How do you plan to continue to differentiate in this competitive landscape?TS: Muji is a very unique concept. All items from fashion to household and foods are created with the same concept philosophy.The quality is very good, but still affordable compared to other market offerings. IR: Do you foresee any challenges in the Australian market, particularly in the context of the cost-of-living crisis we’re going through at the moment? TS: Fortunately, the Muji business hasn’t felt any negative impact from the current economic environment. We have felt extremely strong growth in the Australian market to date.The Muji product is well-positioned in any economy.IR: In the Australian market, are there any standout product categories that are flying off the shelves?TS: Currently, fashion items are popular, especially with the younger generation, who come to our store often and buy fashion items and stationery.IR: Looking ahead, where do you see Muji Australia within the next five years? Are there any specific goals or milestones that you’re hoping to achieve?TS: It’s difficult to say exactly regarding numbers.Highpoint is just the beginning of the journey to expand the business in Australia.We have received very positive feedback on the new store from customers.Opening a new store is the best way to increase the touchpoint of our brand to customers, and we have an online store that resonates with customers.We are focusing on the in-store experience, that’s why we wanted to introduce a cafe and market. We are just a stickler for customer experience.We are keen to expand nationwide and are seeking opportunities and scouting locations, but still in the negotiation phase for the sites we have identified.Brisbane store openings are definitely in the works, after Melbourne and Sydney, which we are focusing on executing first.