Forever 21 Declaring Bankruptcy

Forever 21, the absolute go-to for last minute dresses, basics and bargains. With around 800 retail stores operating globally (about 600 in the United States), you would think that business is booming. They have always kept up with other companies with the same target consumers, like Zara or H&M, and were growing rapidly until they experienced a huge drop in their sales in 2018. They have recently filed for bankruptcy as a way to compensate for this loss in sales. They are set to close 178 stores nation-wide, including a few San Diego branches. 

 

The problem: the “retail apocalypse.” Online competitors, like Fashion Nova, are on the rise, and consumers are starting to prefer online shopping due to convenience and shifting in tastes. So, how can Forever 21 keep up? Shutting down branches is the first step, so they can take time to reorganize and improve their online platform. 

 

As consumers, it’s important to consider what, where and how we want to shop. Online shopping may be easy, but in my opinion, nothing beats trying on clothes, buying them right on the spot, easy returns and no shipping charges! 

 

Another idea to consider is how the closing of retail stores will affect shopping malls. If you think that you could live without a mall, think back to your first date in seventh grade when your mom dropped you off at the mall. Fashion Nova could never.