Who.A.U. is entering one of the more buoyant sectors of U.S. retailing. Abercrombie and its Hollister unit, as well as American Eagle, have been among specialty retailing's strongest performers in the last two years, even though their comp-store sales have weakened recently. Ironically, Who.A.U.'s arrival in the U.S. comes as Abercrombie & Fitch is embarking on global expansion of is own, with the opening of a flagship in London and plans to open another in Tokyo.

The arrival of the South Korean group follows the launch in the U.S. of Japan's Uniqlo chain, which has a more fashion-forward image, as well as continued expansion of such European chains as H&M, Mango and Zara. Meanwhile, Topshop of the U.K. is still searching the U.S. for sites for freestanding stores.