Forever21, A Fast Fashion Brand In The United States, Is Losing Ground In The British Isles.

Since the announcement of the withdrawal of Scotland market in early April this year, the United States

In Britain, the three islands are losing ground. British media say the brand has hired HarperDennisHobbs, a real estate agency, to try to reduce the size of its UK market.

Since opening the first British store in Bermingham Bullring shopping center in 2010, Forever21 has expanded to 8 stores in the UK. However, the British market continued to lose money, and the British market was the most crowded market of fast fashion and high street brands. Forever21 then began closing the stores and found that after the British market was hard to compete, Forever21 began to reduce the first store area of Bermingham from the 8 of the peak to 4 from the beginning of the 2014 fiscal year.

Forever21's four stores are located in London's Oxford street, Liverpool, Bermingham and the Bluewater outlets in Kent, while the Stratford Stratford store in East London has been closed and the Essex Essex Lakeside shopping center shop will be closed.

It is reported that Forever21's closed British three island stores will be taken over by H&M.

Since the middle of last year, rumors of Forever21 capital chain tension have been constant. Although the company has denied it, its response to supply chain and creditors has made the denial of the US company look weak. Earlier this month, Forever21Inc. chief financial officer C.ElizabethJain announced her resignation.

According to statistics, as of February 28, 2014, the Forever21 UK market suffered a pre tax loss of 18 million 400 thousand pounds, while the pre tax loss in the 2013 fiscal year was even more than 66 million 500 thousand pounds; if products and rent write downs were deleted, the operating deficit in fiscal 2014 was 15 million 100 thousand pounds, while 2013 in fiscal year amounted to 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, NewLook, 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, 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 shutting down the sales area and even withdrawing from it, the negative impact of the rapid expansion of Forever21Inc. has been revealed in the sluggish consumer market.

Forever21Inc. had expected revenue growth in 2015 to be 10% to $4 billion 700 million a year, but sources said that the pace of growth has gradually stopped, and that the same store sales have plummeted to negative growth over the past 2 years due to the fact that productivity is not up to the growth of large retail outlets. Meanwhile, RBCCapitalMarkets analyst BrianTunick also estimated that the Forever21 brand is also coping with the difficulties faced by other young retailers, and the same month sales growth is negative in the first 12 months of August 2015.

RBCCapitalMarkets analyst BrianTunick says most brands will be short of cash flow after 5-10 years of rapid expansion, not enough to support the continued expansion of brands.