. >> reporter: it's against this backdrop that japanese retailer uniqlo is trying to break into the u.s. market. the chain offers casual basics and is often compared to gap. at the company's new york city showroom, u.s. c.e.o. shin odake admits his competition is not just clothing stores. >> we are also competing against the other industries, such as computer industry, phone devices. we are not just competing against gap. people's wallets is limited, so it's up to them what they are going to spend. so if you cannot offer new items or innovative product, they are going to buy something else. >> reporter: when it comes to innovation, wet seal often gets high marks. the stock is hovering at its highest level in more than a year. the reason is not just what's on the racks. analyst brian sozzi says the store's social media strategy is the best in the business. >> their online sales have been phenomenal. it's no longer put up a web site, and if you build it, they will come. you have to stand out, and what they are doing is something called co-shopping, where you can get two people online at t