Image of the outside of a Forever 21 next to the outside of SHEIN
Photo: iStock

SPARC Group and SHEIN have entered a partnership that aims to expand Forever 21’s presence online while giving SHEIN a testing ground for brick-and-mortar sales through store-in-store locations at Forever 21 shops. The agreement also included SHEIN taking a one-third interest in SPARC and SPARC becoming a minority shareholder in SHEIN.

Both retailers are aiming to synergize their respective brands to take advantage of each company’s strengths. Longer-term plans for the partnership include accelerating product innovation, exploring new business strategies, enhancing the customer experience, and growing both SHEIN’s and Forever 21’s presence on the market.

While the companies have not shared the exact details of their partnership, they noted that the deal is expected to expand distribution of Forever 21 products through SHEIN’s global e-commerce platform, which reaches 150 million users. Additionally, the companies will “test SHEIN customer-focused experiences” in Forever 21 locations, which will include initiatives beyond the previously mentioned store-in-store shops.

A place in the digital marketplace could offer insights for Forever 21 as well, now that SHEIN has expanded its integrated global marketplace to the U.S. SHEIN Marketplace gives sellers real-time insights and helps them learn about SHEIN’s on-demand production and demand measurement capabilities, which Forever 21 could leverage to improve its own operations.

These insights could also be passed onto fashion brands beyond Forever 21. SPARC, which is a joint venture between Authentic Brands Group and Simon Property Group, is the parent company of fashion brands such as Eddie Bauer, Aeropostale, and Brooks Brothers. The addition of SHEIN’s e-commerce expertise could help these banners expand their digital audiences in an increasingly omnichannel world.

In return, a greater on-the-ground presence in the U.S. could help China-based SHEIN achieve its goal of reportedly doubling revenue to nearly $60 billion by 2025, according to Financial Times. The brand is already popular with younger U.S. consumers, making Forever 21 a perfect match to help the company reach shoppers who could potentially be interested in its products but haven’t been to its site.

SHEIN could use the boost. The share of U.S. Gen Z women considering making a purchase from the retailer fell from 54% in May 2022 to 39% in September 2022, according to Morning Consult Brand Intelligence. This may be due to backlash regarding lackluster ESG initiatives.

While both brands remain strong with younger consumers, Forever 21 and SHEIN have fallen from their peaks — but an omnichannel partnership may help them play off each other’s strengths to fuel future success.

BrainTrust

“This is one of the smartest, potentially game-changing, moves that I have seen in retail in a very long time.”

Jeff Sward

Founding Partner, Merchandising Metrics


“Just like that, SHEIN entered the physical retail arena in the U.S. market. I predict this new SHEIN and Forever 21 acquisition and collaboration will be far from the last.”

Brandon Rael

Strategy & Operations Transformation Leader


“These partners combine their respective omnichannel strengths to drive global growth. “

Lisa Goller

B2B Content Strategist

Discussion Questions

DISCUSSION QUESTIONS: Do you expect SHEIN and Forever 21 to be a good fit for each other? What other synergies could this partnership drive beyond the ones the companies have mentioned?

Poll

Does anyone in your family shop with SHEIN or Forever 21?

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6 responses to “Will SPARC and SHEIN’s Partnership Create a Fashion Juggernaut?”

  1. Neil Saunders Avatar
    Neil Saunders

    Shein is already a fashion juggernaut. So, it is little wonder that Forever 21, where performance is pretty lackluster, wants to jump aboard. It is hoping that exposure to Shein’s fashion-hungry audience will help drive volume. There is an element of ‘if you can’t beat them, join them’ in Forever 21’s thinking, which is a smart move as Shien has been responsible for eroding their market share.
     
    Shein does not necessarily need Forever 21, but it sees some value in having a partner that can offer it physical space, helps it to develop more of a marketplace approach with branded product, and has some credibility in terms of being a name that isn’t tarnished with allegations of unethical conduct.

  2. Christine Russo Avatar
    Christine Russo

    SPARC is THE inflection point nobody is talking about. What do you do when you own 300+ malls of 2000’s and 2010’s brands – well, you buy them and prop them up so they do not go out of business and leave you with a ton of vacancies. Back to this question specifically, will this work, yes, of course, for a while. For the last 25 years or longer retail is made of of quick hits and boosts. In today’s attention economy, do they have a choice?

  3. Brandon Rael Avatar
    Brandon Rael

    Just like that, SHEIN just entered the physical retail arena in the U.S. market.

    Shein has agreed to acquire 1/3 of SPARC Group LLC, owner of Forever 21. Sparc is a joint venture between Authentic Brands Group Brands and mall owner Simon Property Group. The most compelling part of this acquisition is that this new model allows Shein to sell Forever 21 clothing and accessories on their already expanding eCommerce platform.

    Additionally, to increase its size and scale, along with driving new revenue streams, Shein can open Shein-branded shops inside any of Forever 21’s 560 stores located worldwide, with 414 of those operating in the U.S. market. Shein and Forever 21 will have new ways to reach customers through collaboration.

    For Shein, the deal will give the company a more prominent presence in U.S. malls, where its current and potential new customers shop. According to a news release, the company plans to test new approaches, such as shop-in-shops and allowing customers to make store returns. Shein has already dipped its toe into brick-and-mortar retail. The company has had limited-time pop-up shops in cities like Dallas and Los Angeles, attracting eager customers and long lines.

    I predict this new Shein and Forever 21 acquisition and collaboration will be far from the last. Shein is clearly expressing their ambitions and goals to expand in the U.S. market, and there will be other physical retailers looking to partner with Shein and engage with their 150 million consumers to reimagine their operating models, increase their reach, and drive new revenue streams.

  4. Lisa Goller Avatar
    Lisa Goller

    These partners combine their respective omnichannel strengths to drive global growth. Forever 21 accesses a bigger global audience and SHEIN secures a physical presence across the U.S.

    Sharing insights could accelerate turnaround times and help both retailers pounce on viral consumer trends.

  5. Jeff Sward Avatar
    Jeff Sward

    This is one of the smartest, potentially game-changing, moves that I have seen in retail in a very long time. It looks like Shein is about to teach ABG and its mall brands a whole new Time/Action calendar for design to on-floor execution. Customer driven execution. Hopefully that means fast fashion as responsive and efficient, not wasteful and disposable.

  6. Mohammad Ahsen Avatar
    Mohammad Ahsen

    SPARC Group and SHEIN’s strategic partnership will cater to fashion-savvy customers worldwide, offering affordable and top-notch fashion.
     
    With SHEIN’s e-commerce expertise and worldwide reach, will help SPARC Group’s brands grow. This partnership will expand the distribution of Forever 21, making it accessible to SHEIN’s 150 million online users. Plus, SHEIN will showcase its product in Forever 21 stores.
     
    The partnership aims to turbocharge innovation, business strategies, and customer experiences, leveraging their combined strengths for market growth. It’s an exciting synergy of e-commerce prowess and retail expertise.
     
    Beyond the stated benefits, they could collaborate on sustainable practices, tapping into SHEIN’s global reach to promote responsible fashion choices, while also exploring joint marketing campaigns for increased brand visibility.

6 Comments
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Neil Saunders
Neil Saunders
Noble Member
25 days ago

Shein is already a fashion juggernaut. So, it is little wonder that Forever 21, where performance is pretty lackluster, wants to jump aboard. It is hoping that exposure to Shein’s fashion-hungry audience will help drive volume. There is an element of ‘if you can’t beat them, join them’ in Forever 21’s thinking, which is a smart move as Shien has been responsible for eroding their market share.
 
Shein does not necessarily need Forever 21, but it sees some value in having a partner that can offer it physical space, helps it to develop more of a marketplace approach with branded product, and has some credibility in terms of being a name that isn’t tarnished with allegations of unethical conduct.

0
Christine Russo
Christine Russo
Member
25 days ago

SPARC is THE inflection point nobody is talking about. What do you do when you own 300+ malls of 2000’s and 2010’s brands – well, you buy them and prop them up so they do not go out of business and leave you with a ton of vacancies. Back to this question specifically, will this work, yes, of course, for a while. For the last 25 years or longer retail is made of of quick hits and boosts. In today’s attention economy, do they have a choice?

2
Brandon Rael
Brandon Rael
Active Member
25 days ago

Just like that, SHEIN just entered the physical retail arena in the U.S. market.

Shein has agreed to acquire 1/3 of SPARC Group LLC, owner of Forever 21. Sparc is a joint venture between Authentic Brands Group Brands and mall owner Simon Property Group. The most compelling part of this acquisition is that this new model allows Shein to sell Forever 21 clothing and accessories on their already expanding eCommerce platform.

Additionally, to increase its size and scale, along with driving new revenue streams, Shein can open Shein-branded shops inside any of Forever 21’s 560 stores located worldwide, with 414 of those operating in the U.S. market. Shein and Forever 21 will have new ways to reach customers through collaboration.

For Shein, the deal will give the company a more prominent presence in U.S. malls, where its current and potential new customers shop. According to a news release, the company plans to test new approaches, such as shop-in-shops and allowing customers to make store returns. Shein has already dipped its toe into brick-and-mortar retail. The company has had limited-time pop-up shops in cities like Dallas and Los Angeles, attracting eager customers and long lines.

I predict this new Shein and Forever 21 acquisition and collaboration will be far from the last. Shein is clearly expressing their ambitions and goals to expand in the U.S. market, and there will be other physical retailers looking to partner with Shein and engage with their 150 million consumers to reimagine their operating models, increase their reach, and drive new revenue streams.

1
Lisa Goller
Lisa Goller
Active Member
25 days ago

These partners combine their respective omnichannel strengths to drive global growth. Forever 21 accesses a bigger global audience and SHEIN secures a physical presence across the U.S.

Sharing insights could accelerate turnaround times and help both retailers pounce on viral consumer trends.

0
Jeff Sward
Jeff Sward
Active Member
25 days ago

This is one of the smartest, potentially game-changing, moves that I have seen in retail in a very long time. It looks like Shein is about to teach ABG and its mall brands a whole new Time/Action calendar for design to on-floor execution. Customer driven execution. Hopefully that means fast fashion as responsive and efficient, not wasteful and disposable.

0
Mohammad Ahsen
Mohammad Ahsen
Member
25 days ago

SPARC Group and SHEIN’s strategic partnership will cater to fashion-savvy customers worldwide, offering affordable and top-notch fashion.
 
With SHEIN’s e-commerce expertise and worldwide reach, will help SPARC Group’s brands grow. This partnership will expand the distribution of Forever 21, making it accessible to SHEIN’s 150 million online users. Plus, SHEIN will showcase its product in Forever 21 stores.
 
The partnership aims to turbocharge innovation, business strategies, and customer experiences, leveraging their combined strengths for market growth. It’s an exciting synergy of e-commerce prowess and retail expertise.
 
Beyond the stated benefits, they could collaborate on sustainable practices, tapping into SHEIN’s global reach to promote responsible fashion choices, while also exploring joint marketing campaigns for increased brand visibility.

1