The Chinese-based clothing company Shein will acquire about one-third interest in Sparc Group, Forever 21’s operator. Sparc will also become a minority shareholder in Shein after the announcement of partnership between Shein and Forever 21.
Forever 21 through this partnership expects to expand its distribution on the digital platform of Shein which has 150 million online users. The partnership “also offers the opportunity to test” Shein product sales and returns in physical Forever 21 stores across the US, the companies said in a joint release.
Forever 21 has more than 540 locations worldwide and online. The announcement did not disclose financial details of the deal.
The Wall Street Journal first reported the deal between Shein and Sparc Thursday.
Neil Saunders, managing director of Global Data Retail, says that the new partnership “makes sense for both parties”, noting that Forever 21, which still struggles some in the fast-fashion world, could see fast growth on Shein’s sizeable online platform and that Shein “will also hope that the addition of a well-known American name will help to lessen focus on its manufacturing practices, which have come under scrutiny.”
Magazine
info@luminarytimes.com
+1-8308642693
