TOKYO (AFP) — The operator of Japan's low-cost clothing chain Uniqlo on Monday 19 April said it planned to set up its biggest store in the world in New York as it ramps up new openings.

Photo: AFP

Fast Retailing said its US subsidiary had signed a lease contract for the 8,300 square metre (90,000 square feet) space on Fifth Avenue in New York, which would be the firm's second in the city. It gave no other details other to say it saw a "minimal" impact on its financial results for the year.

Uniqlo's first outlet in New York opened in 2006.

The retailer is expected to open its fourth global flagship in Shanghai in May, boasting 1,100 square metres on three floors with a sleek design by the architects behind Apple's stores.

The firm recently reported net profit jumped 55.7 percent to 55.4 billion yen (594 million dollars) in the six months to February.

The casual-clothing empire, founded by billionaire Tadashi Yanai -- Japan's richest person according to Forbes Magazine -- is seen as a rare success story in a domestic retail sector battered by deflation and weak demand.

Uniqlo has continued its expansion across Asia as well as Europe and the United States, despite tough competition from foreign rivals such as Gap, Zara and H&M.