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    The Rise and Fall of Forever 21 Report

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    Jan Reinhold Dumam-ag
    Forever 21 was once one of the fastest growing and largest fast fashion retailers in America, growing from $11,000 in startup capital to over 800 stores globally and $4 billion in annual sales at its peak. However, in September 2019, Forever 21 filed for bankruptcy due to being over $500 million in debt. Issues that contributed to its downfall included having too many stores, a weak e-commerce presence, a lack of focus on sustainability, and insular management decisions. Moving forward, recommendations include lessening stores, improving the online business, collaborating with designers, and focusing more on sustainability.

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    The Rise and Fall of Forever 21 Report

    Uploaded by

    Jan Reinhold Dumam-ag
    301 views10 pages
    Forever 21 was once one of the fastest growing and largest fast fashion retailers in America, growing from $11,000 in startup capital to over 800 stores globally and $4 billion in annual sales at its peak. However, in September 2019, Forever 21 filed for bankruptcy due to being over $500 million in debt. Issues that contributed to its downfall included having too many stores, a weak e-commerce presence, a lack of focus on sustainability, and insular management decisions. Moving forward, recommendations include lessening stores, improving the online business, collaborating with designers, and focusing more on sustainability.

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    Forever 21 was once one of the fastest growing and largest fast fashion retailers in America, growing from $11,000 in startup capital to over 800 stores globally and $4 billion in annual sales at its peak. However, in September 2019, Forever 21 filed for bankruptcy due to being over $500 million in debt. Issues that contributed to its downfall included having too many stores, a weak e-commerce presence, a lack of focus on sustainability, and insular management decisions. Moving forward, recommendations include lessening stores, improving the online business, collaborating with designers, and focusing more on sustainability.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    301 views10 pages

    The Rise and Fall of Forever 21 Report

    Uploaded by

    Jan Reinhold Dumam-ag
    Forever 21 was once one of the fastest growing and largest fast fashion retailers in America, growing from $11,000 in startup capital to over 800 stores globally and $4 billion in annual sales at its peak. However, in September 2019, Forever 21 filed for bankruptcy due to being over $500 million in debt. Issues that contributed to its downfall included having too many stores, a weak e-commerce presence, a lack of focus on sustainability, and insular management decisions. Moving forward, recommendations include lessening stores, improving the online business, collaborating with designers, and focusing more on sustainability.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 10

    The Rise and Fall of

    Forever 21
    The Case
     Since its inception in 1984, Forever 21 has been the go-to
    destination for American teenagers to get their hands on
    the hottest trends and cute clothes at an affordable price.

     Forever 21 was once among America's fastest-growing


    fast-fashion retailers.

     A billion dollar teenage clothing emporium that rode


    America's mall boom and bust.

     However, On late September of 2019, Forever 21 filed for


    bankruptcy.
    The Beginning: of an American Dream
     Fashion 21 in Highland Park, Los Angeles, in 1984.
     South Korean immigrants Jin Sook and Do Wan Chang
    started the chain in 1984 with $11,000 they save from
    their low paying job.
     Opened the store with the hopes to reach the young
    Korean-American demographic.
     Using styles similar to those in South Korea
     Within only its first year, it was hugely successful, and its
    sales totaled $700,000.
    The Rise
     They leveraged their success, opening new stores every six months,
    which broadened the company's customer base at the same time.
     Forever 21 became one of the largest tenants of American malls,
    with 480 locations nationwide.
     It then opened more than 800 stores across the globe in 2016.
     Forever 21 expanded rapidly in a short period of time, going from
    outlets in 7 countries to 47 in just six year.
     The then fashion 21 has grown into the clothing lines Forever 21, XXI
    Forever, Love 21 and Heritage with over 700 stores in the Americas,
    Asia, the Middle East and the UK.
     At its peak, the retailer brought in more than $4 billion in annual
    sales and employed more than 43,000 people worldwide in
    hundreds of stores.
    The Fall
     On late September of 2019, Forever 21 filed for bankruptcy. After months of
    anticipation.
     The company overall was $500 million in debt when they considered filing
    for bankruptcy.
     Closing between 300 and 350 stores, including as many as 178 in the United
    States.
     Already closed more than 15,000 retailers across the US and could shut
    down 75,000 more,
    SWOT ANALYSIS
     Strengths  Opportunity
     Staying in trend:  Growing need for youngsters to stick
    to trends
     Affordable
     Fashion changes
     Customer Savvy
     Personalization clothing
     Weakness
     Threats
     Private ownership  Economic Crisis
     Centralized decision.  Focus on recycling
     Excessive focus on teens  Retail Apocalypse
    ANALYSIS/EVALUATION
     Too Many Stores, Too Much Space.

     A Weak Focus on e-Commerce

     Lack of Move Toward Sustainability

     Insular Management Style.


    SOLUTION/ RECOMMENDATION

     Lessen stores and focus in maintaining and improving


    the brand.

     Focus more on improving e-commerce.

     Collaboration of known fashion designer and celebrity.

     Move toward sustainability.

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