Forever 21's Big Grab at the U.K. Market Can Win, as Long as it Plays to Plus-Sizes
Forever 21 is going boldly where relatively few American brands have ventured to go -â€" the U.K. Seemingly unfazed by the slumping economy and a weak dollar, the LA-based fast fashion chain started looking to expand into the competitive British market back in 2008. With its first home in Birmingham's Bullring shopping center, Forever21 has a unique opportunity to stake a major claim in the hearts -- and wallets-- of Brit chicsters.
While it's not Covent Garden, the original London location Forever 21 was closing in on, the 53,000 square foot retail space is smack in the middle of a bustling marketplace, and Birmingham's city center. The retailer inked a 15-year agreement in a deal worth more than £1m annually. That places it squarely up against neighboring European fast fashion chains H&M, Topshop, and Mango.
But it's already proven a worthy competitor against H&M and Uniqlo by snapping up a good bit of retail space (and marketshare) in Japan with new stores in that trend hunter's paradise, Harajuku, as well as in Ginza and Funabashi. The Harajuku store had over one million customers in the first two months alone.
And Forever 21 proved it can continue to grow as the economy shrinks. In the midst of a Wall Street meltdown at the end of 2008, it seized the opportunity to bestow affordable retail therapy to the footsore masses traipsing through Times Square in New York with a hulking 90,000 square foot outlet.
These behemoth footprints allowed Forever21 to test new concepts and merchandise, an exercise that led to the roll out of Twelve by Twelve (a quick "couture" collection), 21Men, and HTG81 for kids, among others.
With over 50,000 square feet to frolic in, there's no doubt Forever 21 will feature some or all of these proprietary brands in distinct sections throughout the store, which means the store can become a one-stop shop, much the way traditional department stores such as Selfridges and Debenhams appealed to customers of yore. The difference here is Forever 21's quick turnover of merchandise. Fast fashion is inherently speedy and the retailer replenishes stock at an astonishing rate (sometimes daily) as it brings in a mix of private label apparel and goods purchased from suppliers.
The make-or-break point for the retailer now is how it tends to the care and feeding of Faith 21, its plus-size line. The availability of trendy (and inexpensive!) threads in larger sizes can catapult the chain over its competitors H&M and Topshop. H&M's sizing only goes to a UK 20 (around a U.S. 16) and Topshop a UK 16 (U.S. 12) which fashion blogger Diana Rajchel says is actually too small to be considered plus-size. In fact, she told me that Forever 21 would do well to expand Faith 21 sizing to include true plus fits: those above a U.S. 22-24. If Team 21 can figure that out before the opening of the Birmingham store, they'll have a retail coup on their hands right in time for holiday spending.
Image via Flickr user Bhumi Finding Herself CC 2.0
Related: