Forever 21 is downsizing some of its biggest stores at malls across the US. Its store count swelled from 480 stores in 2010 to 600 stores in 2014 to 800 stores in 2018. The once-hot retailer is grappling with a sales slump as mall traffic declines and teens gravitate toward other fast-fashion outlets and online-only retailers. Sales dropped by 20 per cent or 25 per cent last year. The average size of a Forever 21 is now 21,000 sq ft, which is nearly half the average of 38,000 sq ft still listed on its website.
As Forever 21 supersized its stores, it filled them with a growing array of merchandise, expanding into children's, men's, plus sizes, intimates and athleisure. However, the company struggled to gain traction among a wider group of customers. In an effort to be everything to everyone, it ended up being nothing to anybody. It also cannibalized sales from some of its existing stores while adding to its fixed overhead costs.
Customers complain there aren’t enough employees on the floor available to help and that they often find entire sections of dressing rooms closed off and cash registers that have been shut down. The company pulled the plug on its China operations earlier this year. It has also been closing stores in the United Kingdom.
