Shein and Forever 21 announced a deal that will combine the fast-fashion competitors’ customer reach. As part of the joint venture, Shein will acquire a third of Forever 21’s operator, SPARC Group, and SPARC Group will take a minority stake in Shein.
This agreement will combine Shein’s online-based shopping model with Forever 21’s brick-and-mortar retail stores, giving Shein a larger presence in the U.S. and more exposure to its target demographic of customers.
Having part ownership in SPARC will also give Shein data about merchandising strategies and insights that could help the company launch its own physical footprint, although a company spokesperson said the brand has no plans for its own retail stores. Shein has already announced plans to test a number of programs to attract new customers, including allowing customers to make returns in stores and marketing through pop-up shops.