Forever 21 Or Quit UK Market Alexander

After the announcement of withdrawal from the Scotland market in early April, the American fast fashion brand Forever 21 fell back on the British Isles. British media said the brand had hired the property agency Harper Dennis Hobbs to try to reduce the area of its UK market.

Forever 21's four stores are located in Oxford street, London, Liverpool, Bermingham and the Bluewater outlets in Kent, and the Stratford Stratford store in East London has been closed. The Essex Essex Lakeside shopping center shop will also be closed.

It is reported that Forever 21 will close the British three island store will be taken over by H&M.

Since 2010 in Bermingham

When the shopping center opened its first British store, Forever 21 expanded to 8 stores in the UK, but the British market continued to lose money, and the British market was the most crowded market of fast fashion and high street brands. Forever 21 then began closing stores and found it difficult to compete in the UK market. Forever 21 started Bermingham's first 2014 fiscal year.

It has been cut down from 8 of the highest peak to 4 today.

Since the middle of last year, rumors of tension in the Forever 21 capital chain have been ongoing. Although the company has consistently denied it, its response to supply chains and creditors has made the denial of the US company look weak. Earlier this month, Forever Jain Inc., chief financial officer of Forever 21, announced its departure.

According to the no fashion Chinese network data, as of February 28, 2014,

The British market has a pre tax loss of 18 million 400 thousand, while the pre tax loss in fiscal 2013 is more than 66 million 500 thousand pounds; if products and rents are deleted, the operating deficit in fiscal 2014 is 15 million 100 thousand pounds, while 2013 in fiscal year is 20 million pounds.

Meanwhile, revenue increased from 37 million 100 thousand pounds in fiscal year 2013 to 48 million 300 thousand pounds.

Although the competition in the US market is equally competitive, the UK market is fast fashion, high street, fashionable segment, and the market is fiercely competitive, because the British market also has strong brands such as Topshop, New Look, Next and so on. At the same time, H&M, Zara, Gap and so on also have a large number of stores in the UK. Besides, UNIQLO, A&F, AEO, J.Crew and other Asian and American mass brands all hope to make a difference in the UK market.

From the initial ambitious development of the British market and trying to double the Oxford Street flagship store in 2012, and now even closing down and reducing the sales area, it may even quit. The negative impact of the rapid expansion of Forever 21 Inc. is uncovered in the sluggish consumer market.

Forever 21 Inc. has predicted that revenue in 2015 is expected to grow 10% to 4 billion 700 million US dollars over the same period last year, but sources said that the growth pace of the company has gradually ceased. Moreover, due to the fact that productivity has not kept up with the growth of large retail stores, the same store sales have plummeted to negative growth in the past 2 years. Meanwhile, RBC Capital Markets analyst Brian Tunick also estimated that Forever 21 brand is also dealing with the problems faced by other young retailers. The sales growth of the same store in the first 12 months ended August 2015 is positive.

RBC Capital Markets analyst Brian Tunick says most brands will be short of cash flow after 5-10 years of rapid expansion, not enough to support the continued expansion of the brand.