Launched in 1984, Forever 21’s fast-fashion business model, which was based on quick-turnaround designs that could be inexpensively mass produced, proved wildly popular with young customers who didn’t have much money to spend but wanted the latest looks. By 2015, global sales peaked at $4.4 billion, with 480 stores occupying enormous spaces in malls across America.
They weren’t seeing the trends, and instead of slowing down on physical space, they were building up physical space. It wasn’t just the number of stores that was problematic, it’s also their size. Forever 21 stores were huge, with the average size at 38,000 square feet. Meanwhile, other chains were closing big stores and moving to smaller footprints and mini-shops to shrink costs and maintain consumer access to their brands.
The company also didn’t bolster its e-commerce platform, even though its core customers are young people who prefer to shop online. This led to its bankruptcy in 2025.
