Fifty percent rent concessions?
Impressive Alliteration!
To paint a picture of fashion lore...
F21 was the trailblazer of online and in-person retail fast fashion ~15 years ago. If you didn't know yet if you were an American Eagle, Abercrombie or PacSun kind of girl - and you had not yet "aged into" the Zara or ASOS paradigm, you could do a one-stop shop at F21 and get a taste test of high quality garments in various styles at a decent price point (and they offered lucrative sales). However, F21 garment quality dropped significantly about 10 years ago and F21 became increasingly associated with the devil's "fast fashion."1
So as this fabled consumer grew up, alongside the Zara/ASOS paradigm, the drumbeat of "ethical fashion," came to the rescue. The market share was originally dominated by American Apparel (that's a story) and eventually evolved into even higher-end alternatives such as LA Apparel, Everlane and Reformation and up-priced ASOS and Zara options. Standard "grown-up" labels such as Anthropologie also play into this marketing quite a bit.
For the consumer aging into the F21 demographic today, boutique options such as Brandy Melville are more attractive as far as more high-end in-store shopping (with higher garment quality - F21 is essentially a dirty word at this point), and Shein and Fashion Nova seem to dominate the online marketplace for more "flirty" or "daring" styles. However, Target's younger brands such as Wild Fang and A New Day actually capture a lot of the current F21 demo interest with on-average higher garment quality.
Today's online consumer fashion2 discussion communities are increasingly preoccupied with "ethical fashion," even for younger consumers. This generally splits into two factions, the company or brand route (even Target is preoccupied with selling its garments as "less wasteful") or the 2nd (3rd and 4th-hand) marketplace and the growing "up-cycle" marketplace. Interestingly, consumers geographically distributed seem to concur that Goodwill and Savers prices are extraordinarily high, perhaps reflecting demand.
If I had to name it, F21's garment quality dropped dramatically, they never made a successful jump into cosmetics3 and Target captured a good majority of the scraps.

Footnotes

  1. The dirty word "fast fashion" entered the vocabulary about 10 years ago when it began and continues to warp apparel marketing.
  2. "Real" high fashion commentary - in the far-off culture magazines in the clouds - hilariously seems to still come down to textile innovation.
  3. People seem to be buying more cosmetics than clothes - when you look at what's purchased new (you can't buy cosmetics used, ew) - even Macy's seems to be transitioning to more cosmetics as the department store decays.
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I didn't realize these guys still existed. Sometimes forever is not 21.
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I thought they were gone too.
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Turns out not everyone wants to be 21 forever.
Most of these brick and mortar mall based brands are in deep trouble. I used to do a lot of work with the Hudson's Bay here in Canada and they are having enough problems of their own but they did have some success leasing out space in their stores to other brands who maybe were shrinking their own store footprint. I wonder if that will be a common way for these brands to maintain a physical footprint while they try to move their business online.
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Good question. Where I live a few takeout food places share space. Typically they have complimentary menus. What we used to call department stores like Macy's or Sears have either gone the rent shelf space thing or gone under.
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I thought cloud kitchens was going to be a big thing. That is obviously just for takeout or delivery. Not sure why it never took off.
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I never heard of this before. I just checked it out. It makes sense. Did it catch on at all in Canada?
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Not really. The guy who created Uber founded it. We did have a couple of them in Toronto and I found the concept interesting because we did some work for a small restaurant chain and even a basic build out and setup for a small restaurant is hundreds of thousands then add rent, inventory, labour costs etc etc. So I thought it would be a great way for existing and new brands to minimize a lot of that.
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It seems that the problem lies in the fact that they do not know how to administer and manage their supply chain well and other smarter competitors with more online presence are eating up their ground.
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All offline brands are focusing on online these days. So that their fixed cost can be reduced.
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I remember when forever 21 first came out. Cheap clothing then, even cheaper now. The quality is so bad. Fast fashion, and especially bad for the environment.
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If only they started accepting BTC.
They already got the name right. The women’s department could be called “Forever Laura 21”.
And Bitcoiners would start buying cheap and horrible-quality high time preference fiat clothes!
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While the company is facing financial difficulties, it has yet to hire advisors and isn’t considering a second bankruptcy protection filing, the people said. It’s working to restructure its many leases so it can cut costs
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Do you think they'll get it?
half > zero
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They might.
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