Question

In 2014 Forever 21 started a new chain of stores called F21Red. (a) What type of merchandise does the chain sell? (b) What age group(s) does this chain target? (c) The first three stores opened in 2017 in which three cities in the United States? (d) Discuss whether this chain has had a positive or negative effect on Forever 21’s finances.

Answer 1

a)F21 red is a retailer whose merchandise includes clothing, apparels and clothing accessories for men's, children and women. They also sell cosmetics, skin and hair products. It also sells footwear products.

b)The chain follows the concept of teen retail store but its strategy is not to target any age group but to provide clothing for all which creates a wider base of customers. Their core target age group remains 16-25 years of age.

c) The first three stores opened in 2017 in Bronx, New York; San Antonio, Texas; and Chicago.

d)The chain had a negative effect on forever 21 finances since these stores sales were half of what was predicted. Eventually, reckless expansion of these stores led to banruptcy of forever 21.