Clothing store chain Forever 21 wants to expand quite strongly the next few years, mainly with its F21 Red formula which offers a wider range of products.
Compete with big brands
CEO Don Chang told WWD magazine that his ultimate goal is to double the company's size over the next three years. Currently, Forever 21 has 600 stores worldwide, 130 of those are located outside the United States.
More stores should allow Forever 21 to better compete with other fast-fashion brands like H&M and Zara, both owning a multitude of the number of Forever 21 stores.
New budget formula
Part of the expansion has to go through its new F21 Red formula, which opened a first store in Los Angeles in May. It has a wider range of basic clothing items at lower prices, which meets the customer's request as it asked for more clothing options.
This new formula allows the company to buy larger volumes and therefore lower the price. A pair of jeans can be purchased from 7.8 dollars (5.7 euro), while shirts are 3.8 dollars (2.8 euro). The low prices have raised questions about the labour conditions and wages in the textile factories that create this clothing.
Forever 21 will divulge more information about its expansion plans in the upcoming months.