A guest room at the Muji Hotel Ginza in Tokyo.

A guest room at the Muji Hotel Ginza in Tokyo.

Photographer: Akio Kon/Bloomberg
Retail

Muji’s Minimalist Aesthetic Is Too Easy to Knock Off

  • Same-store sales fall in China as company battles imitators
  • Muji is moving production to cheaper countries to cut costs

The retailer Muji became one of Japan’s most recognizable brands by selling simple, practical items that it hopes will last for decades. It turns out, though, that “less is more” has its limits as a business strategy.

After a decade of expansion that brought its minimalist emporia of modular shelving, sturdy kitchen gear and earth-tone fashions to cities from Toronto to Shanghai, Muji is struggling. In April, parent company Ryohin Keikaku Co. reported its first decline in operating profit in eight years and a financial outlook below analysts’ expectations, as well as a rare drop in same-store sales in China.