In today’s retail landscape, countless pressures seem to be weighing down both consumers and retailers.
Once seemingly robust businesses have been hurt by a change in the market.
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Take, for example, Joann or Forever 21. In their heydays, both retailers earned prominence and success for what they offered.
In Joann’s case, it was a seemingly unmatched selection for crafters. Nowhere else could you find a chain store with its quality, inventory and pricing.
As for Forever 21, the mall retailer offered rock-bottom prices for fast fashion. Finding the trendy selection of apparel at any other retailer at the discounts Forever 21 was offering was difficult.
Both those retailers, however, have now filed for Chapter 11 bankruptcy and both are closing all their stores.
The question isn’t necessarily where they went wrong but instead which external pressures were so strong that two former kings of retail couldn’t withstand the test of time.
The inside of a crowded mall.
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Retail is changing
The situation isn’t unique to Joann and Forever 21.
Plenty of brick-and-mortar retailers have struggled in recent years as the way consumers shop has shifted.
Many mall retailers find themselves especially troubled, as the indoor shopping mall falls to the wayside and consumers choose instead to shop other ways.
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Some opt to shop at outlet malls, which typically offer lower prices for brand names than stores at traditional malls do. Others shop at discounters in suburban plazas, like Ross, Marshalls and TJ Maxx.
And plenty choose to do their shopping from the comfort of their homes. Large online retailers like Amazon and Shein have eaten into the market shares of mall retailers like Forever 21 and Express.
Top mall retailer closing most stores
The problem isn’t just in North America, either.
Top Australian denim and clothing retailer Jeanswest will be closing 90 of its stores and cutting about 600 jobs as a result.
Jeanswest will enter administration for the second time since 2020. When it first entered administration in 2020, it was bailed out by Hong Kong-based Harbour Guidance.
Administrators say Jeanswest is struggling as customers try to save more to afford basic necessities.
“The owners have done everything they can to keep Jeanswest going,” administrator Lindsay Bainbridge said in a statement quoted by ABC.net Australia, adding, “They deeply regret the impact of store closures on their team members and their customers, and we will be working now with teams across the country.”
Jeanswest will put its merchandise in stores on sale as it prepares to close those outlets.
Its online future is less certain, with some administrators indicating they intend to keep Jeanswest going.
Several stores in New Zealand are expected to remain open.
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