Tuesday, 8 May 2012

Analysis of US brand in the UK ... Forever 21



Forever 21 began in Los Angeles on April 21 st 1984. Back then it was called Fashion 21. By their end of the first year sales has risen from $35,000 to $700,000. From this success the founder decided to open up a new store every 6 months. From this the stores name changed from fashion 21 to Forever 21.The store grew dramatically over in the US and thoughts to go worldwide started growing. They entered Europe through beginning in the UK. Asked why it had chosen to tackle the UK market now, executive vice president Larry Meyer said: "We've been around for over 25 years and there's always cycles within the economy."The customer always knows they will get great value at Forever 21, so the fact that it's a difficult time now just..makes our concept potentially more appealing to people." Asked why Birmingham, and not London for example, opened first, he said the company has "to wait and find the right location". Mr Meyer said: "We felt it was a very unique opportunity to obtain 53,000 sq ft within the Bullring and that was just coincidental with vacancies."We have been looking at the UK as our first location within Europe, as a natural point of takeoff from the United States to a country that speaks English."We came to Birmingham and the Bullring and decided to make this our first store because we knew that Birmingham would be a city that we would eventually get to."
Forever 21 have become successful in the UK retail market as they chose their timing carefully. The store offered value at a good price in a time of low employment and high numbers of redundancies. Not only offering affordable up to date products they also brought with their new store employment. The store offered 250 full time jobs within the new Birmingham store.
 Nicole Warr 

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