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Failure Case Study: Forever 21

Publisher GlobalData
Published Jul 30, 2025
Length 9 Pages
SKU # GBDT20418513

Description

Failure Case Study: Forever 21

Summary

Forever 21 is a US-based fast fashion retailer which filed for bankruptcy in March 2025. However, its international stores and online channels continue to remain operational.

Forever 21’s inefficient store inventory, loss of reputation, and stiff competition resulted in its downfall in 2025

Lack of a sustainability framework and weak online presence hindered Forever 21’s recovery

Key Highlights
  • Forever 21’s initial strategy involved providing on-trend fashion, beauty, and home goods while stocking a small but frequently updated selection of products.
  • After a change in its ownership in 2020, the retailer widened its inventory which created needlessly large stores with weak footfall and sales.
  • A strong online presence with convenient fulfilment options is essential for growth in retail.
Scope
  • Failure Case Study: Forever 21 provides a deep dive analysis of the factors that caused the retailer's failure in the apparel sector
Reasons to Buy
  • Gain deep insights on Forever 21's failure to identify opportunities and threats in the US and global apparel sector

Table of Contents

9 Pages
Executive Summary
What: How Forever 21 grew from a single store in LA to a multibillion-dollar enterprise
Why: A change in ownership failed to revive Forever 21’s revenues back to peak levels
Why: Excessive competition and reputation loss led to Forever 21’s downfall
Take-outs: Retailers must maintain a robust inventory and store network to drive sales
Take-outs: Building a competitive edge and sustainable operations are essential for growth
List of Figures
Forever 21’s global value sales ($ billion), 2019 - 2024
Forever 21’s global store count, 2019 - 2024
Shein vs Forever 21, global value sales ($ billion), 2019 - 2024
Q1 2025, Global consumers: Online shopping behavior for non-grocery products over next three months
Q1 2025, Global consumers by age who intend to shop online more frequently over the next three months.
Q1 2025, Global consumers: How important is convenience associated with your retail purchases?

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