Shein and Forever 21 team up in hopes of expanding reach of both fast-fashion retailers
Fast fashion retailers Shein and Forever 21 are going into business together
NEW YORK — Fast fashion retailers Shein and Forever 21 are going into business together.
Under a partnership agreement announced Thursday, the Chinese-founded Shein will acquire about one-third interest in Sparc Group, Forever 21's operator. Sparc will also become a minority shareholder in Shein.
The deal is expected to expand Forever 21's distribution on Shein's global e-commerce platform, which has attracted 150 million online users. In turn, the partnership “also offers the opportunity to test” Shein product sales and returns in physical Forever 21 stores across the U.S., the companies said in a joint release.
Forever 21 has more than 540 locations worldwide and online. The announcement did not disclose financial details of the deal.
The Wall Street Journal first reported the deal between Shein and Sparc Thursday.
Sparc is a joint venture that includes brand development company Authentic Brands Group and mall operator Simon Property Group. Beyond the U.S.-based Forever 21 — which was bought out of bankruptcy just three years ago — Sparc also makes and distributes apparel for brands like Aéropostale, Eddie Bauer and Reebook.
Shein, meanwhile, has had a meteoric rise in the U.S. by offering low-cost apparel and items. Its primary audience is younger women, which it caters to on social media through partnerships with online influencers and celebrities.
Neil Saunders, managing director of GlobalData Retail, says that the new partnership “makes sense for both parties” — noting that Forever 21, which still struggles some in the fast-fashion world, could see fast growth on Shein's sizeable online platform and that Shein “will also hope that the
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