Shein Partners with Forever 21 for U.S. Expansion, Eyes Top 10 U.K. Ranking
Shein, the fast-growing fashion retailer, has inked a strategic deal with SPARC Group, operator of Forever 21, for U.S. distribution. The partnership, announced in August 2023, sees Shein acquiring a roughly one-third stake in SPARC, with SPARC becoming a minority shareholder in Shein. The goal? To test Shein's products and innovations in physical Forever 21 stores across the USA, including shop-in-shops and in-store returns.
Shein's expansion comes as it solidifies its position in the U.K. market. In 2022, it ranked 14th among apparel retailers, claiming a 1.7% market share. GlobalData predicts this will rise to 2.2% in 2023, making Shein one of the top 10 players in the U.K. market. Shein's U.K. revenue from September 2021 to December 2022 stood at £1.12 billion ($1.38 billion).
Shein's physical presence in the U.K. includes a pop-up store on Oxford Street, opened during London Fashion Week in 2023. Meanwhile, rumors hint at potential talks with U.K.-based fast fashion brand Missguided for a possible acquisition.
Despite its growth and expansion, Shein has faced legal troubles and congressional investigations in 2023 over its labor practices. As it continues to grow, both in the U.S. and U.K., the company will need to address these concerns and ensure its practices align with industry standards.
