A partnership has been announced between fast-fashion rivals Shein and Forever 21.
On Aug. 24, 2023, Shein revealed it acquired nearly a third of Forever 21’s distributor Sparc Group, CNBC reports. On the other hand, the group acquired a minority stake in Shein.
Forever 21, once a popular destination among teens and early adults, saw a decline in 2019, leading to 178 United States stores closing, per The New York Times. Within that same year, it filed for bankruptcy and operated under new ownership, according to NPR.
However, as stated in a news release, the strategic partnership is expected to increase Sparc Group’s distribution of Forever 21 while benefiting Shein by increasing its reach, which includes 150 million online users as of this writing.
Another benefit for Shein will be that its customers will have the ability to “shop-in-shops” and return items in store to locations across the United States.
“We are excited for the partnership with Shein as it reflects our shared vision of providing customers with unparalleled access to fashion at affordable prices,” said Marc Miller, CEO of Sparc Group, according to a news release. “By working together, we will provide even more innovative and trendsetting products to fashion enthusiasts around the world.”
Shein Executive Chairman Donald Tang expressed similar sentiments.
“SHEIN is thrilled to have SPARC Group as a partner and minority shareholder and we look forward to finding new ways to delight our customers through the potential of this partnership,” Tang said in a statement. “The powerful combination of Simon’s leadership in physical retail, Authentic’s brand development expertise, and SHEIN’s on-demand model will help us drive scalable growth and together make fashion more accessible to all.”
