Shein just announced a deal with its fast-fashion peer Forever 21

August 24, 2023 09:03 AM PDT | By Invezz

Shein just announced a deal with its fast-fashion peer Forever 21 — Image source: Invezz

Here’s what we know so far

Financial details of the agreement remain unknown.

But the Wall Street Journal did confirm in its report on Thursday that Sparc Group – a specialty retail joint venture between Authentic Brands which owns Forever 21 and the real estate giant Simon Property – has agreed to grab a minority stake in Shein.

The digital-first retailer will also acquire about one-third of Sparc Group as part of the said deal, the WSJ added. Note that there have been rumours in recent months that Shein is considering a U.S. initial public offering (IPO).

How does this deal benefit Shein and Forever 21?

The stock market news arrives a couple weeks after Shein reported record profit for the first six months of this year. It will now start to list the Forever 21 collection on its online platform that has a user base of about 150 million worldwide.

The deal is equally attractive for Shein as well because the retail stores of Forever 21 offer means for it to further expand its footprint in the U.S. market and distance further from China. Shein moved its headquarters from Nanjing to Singapore in 2022.

The fast-fashion eCommerce giant has recently come under scrutiny after a House committee accused it of violating the United States’ import tariff law. Shein has declared such allegations “untrue”.

The post Shein just announced a deal with its fast-fashion peer Forever 21 appeared first on Invezz.

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