Forever 21 is a US-based fast fashion retailer which filed for bankruptcy in March 2025. However, its international stores and online channels continue to remain operational.
Forever 21’s inefficient store inventory, loss of reputation, and stiff competition resulted in its downfall in 2025
Forever 21’s inefficient store inventory, loss of reputation, and stiff competition resulted in its downfall in 2025
Lack of a sustainability framework and weak online presence hindered Forever 21’s recovery
Key Highlights
- Forever 21’s initial strategy involved providing on-trend fashion, beauty, and home goods while stocking a small but frequently updated selection of products.
- After a change in its ownership in 2020, the retailer widened its inventory which created needlessly large stores with weak footfall and sales.
- A strong online presence with convenient fulfilment options is essential for growth in retail.
Scope
- Failure Case Study: Forever 21 provides a deep dive analysis of the factors that caused the retailer's failure in the apparel sector
Reasons to Buy
- Gain deep insights on Forever 21's failure to identify opportunities and threats in the US and global apparel sector
Table of Contents
- Executive Summary
- What: How Forever 21 grew from a single store in LA to a multibillion-dollar enterprise
- Why: A change in ownership failed to revive Forever 21’s revenues back to peak levels
- Why: Excessive competition and reputation loss led to Forever 21’s downfall
- Take-outs: Retailers must maintain a robust inventory and store network to drive sales
- Take-outs: Building a competitive edge and sustainable operations are essential for growth
- Forever 21’s global value sales ($ billion), 2019 - 2024
- Forever 21’s global store count, 2019 - 2024
- Shein vs Forever 21, global value sales ($ billion), 2019 - 2024
- Q1 2025, Global consumers: Online shopping behavior for non-grocery products over next three months
- Q1 2025, Global consumers by age who intend to shop online more frequently over the next three months.
- Q1 2025, Global consumers: "How important is convenience associated with your retail purchases?"
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- Forever 21
