A Shein app is shown at the iOS App Store in Bargtseide, Germany on May 3, 2021.

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Fast-fashion rivals Shein and Forever 21 have come together.

On Thursday, the retailer announced a deal that would bring together two brands that have a strong following of young shoppers and a reputation for trendy clothing and accessories at low prices.

As part of the joint venture, Sheen will acquire approximately one-third of Forever 21’s operator, Spark Group. Spark will also take a minority stake in Sheen.

Financial details were not disclosed.

Sheen’s deal with Forever 21 happened just as he was trying to distance himself scathingly and gear up for A widely rumored US initial public offering. Amid the backlash, the online retailer has faced allegations of violating US import tariff laws, filling landfills with its extremely cheap items and relying on low-paid or forced labor. those allegations are prompted an investigation by lawmakers And Shock on social media.

Sheen has denied those allegations.

company It has also tried to distance itself from China, the country where it was founded. Its headquarters is now in Singapore. Ties with China have become a risk for the company, as US regulators and lawmakers are scrutinizing the Chinese social media app, TikTok.

While Sheen and Forever 21 have similar buyers, they cater to those customers in different ways. Sheen sells her merchandise online. US-based Forever 21 is mostly known for its mall stores.

By teaming up, Shein and Forever 21 will have new avenues to reach consumers. Some Forever 21 dresses, shoes and other accessories will be available through Shein. The online retailer has 150 million users, Sheen said.

For Sheen, the deal will give the company a larger presence in US malls, where its current customers and potential new customers shop. The company plans to test new approaches, such as shop-in-shop and allowing customers to return to stores, according to a news release.

Sheen has already made its foray into brick-and-mortar retail. The company has limited-time pop-up shops in cities like Dallas and Los Angeles, drawing eager customers and long lines.

Shein’s holding company Spark, a joint venture that includes Authentic Brands Group, a brand management company with a portfolio of well-known retail names such as Brooks Brothers, Lucky Brand and Nine West; and Simon Property Group, the country’s largest shopping mall owner.

there was agreement First reported by The Wall Street Journal,

– CNBC Gabrielle Fonrouge contributed to this report.

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