A case study I wrote for my Retail Concepts and Policies class in 2014. The focus was on Technology in Retail.

2. Background and Profile
Company History
Founded by Do Won Chang. Fashion 21, its name at the
time, was first opened on April 21, 1984. The first shop was a
900 sqft. on Figueroa St. in Los Angeles. It was originally
marketed towards Korean American women, but after the
stores success, they broadened their market to younger
generations. Coming off his first year success, Chang opened
new stores every six months, and changed the name to
Forever 21. Now being the 5th
largest specialty retailer in the
United States, it still remains a family business centered
towards selling affordable clothes and accessories.
Company’s Progression Timeline
1989 1995 2001 2003 2006
The 1st
mall store
was opened in
Panorama City,
CA
The first store
outside of
California was
opened at the
Mall of the
Americas in
Miami, FL
The first
international
mall was opened
in Canada
The business
expanded online
and launched
their online
website.
The 21 Men line
was added to the
brand
2007 2009 2010 2012 2014
The intimates
and lingerie line
was added
Cosmetics and
Forever 21 Plus
was added
Love 21 and
Forever 21 Girls
was added. The
first UK store
also opened
The new HQ
opened for
business
New partnerships
were formed with
Anja Rubik,
Keith Haring,
Jean-Michel
Basquiat and
more
Store Location
Forever 21 has about 478 locations in the US alone. And of those 478, there are just over
100 locations here in California. Each store has their own distinct layout of how they market and
section off parts of the store.
The one store that I will single out is the Forever 21 that is located in the Ontario Mills
Mall. Out of the hundreds of Forever 21 locations, this is the one I’m most familiar with and
spend my time shopping at.

3. Product Mix
The Ontario Mills Forever 21 carries these products:
• Women’s clothing
o Includes lingerie, swimwear, and activewear
• Women’s shoes
• Men’s Clothing
• Kids Clothing
• Women’s Accessories
o Jewelry
o Watches
o Bags and wallets
o Hair Accessories
o Sunglasses
o Hats
o Scarves and gloves
o Belts
o Cosmetics
Forever 21 has a wide range of clothing options and accessories. The store located in Ontario is
one of the stores that, along with women clothing, carry the 21 Men, Forever 21 Kids, and
Forever 21 Plus line. These sections may be the smallest and most limited in the store, but not all
stores have these options.
Overall Retail Strategy
Controllable Variables
• Pricing: From the gecko, Forever 21 was all about selling clothes at affordable prices.
The range of price for their clothing is as low as $7 to $30. There are pricier items that
can go up to $50, but the majority of items are between the 7 and 30 range.
• Promotions: Since this is time of Black Friday and Cyber Monday, Forever 21 has big

4. deals in their store and for their website as well. The same website promotions, go to the
stores as well. Right now you can get 20% and 30% off your purchases, depending on
how much money you spend. All year round, the Ontario Mills store has a huge section
just for clothes on sale. That includes shoes and accessories as well.
• Store Layout: When you first go to this store, it kind of like a huge maze. There are so
many sections and you can almost lose track. There are 2 access ways to the store, from
outside and from within the mall. At both ends they have the check-out counter, so you
don’t have to walk to the other side of the store to purchase your items, its very
convenient. They have 2 dressing room areas, they usually keep only the main one open,
unless it’s really busy. There are many dressing rooms in the main one, so they never
really need to open the other one. Throughout the store, they always have everything
presentable. There is also a range of mannequins that they dress up in the latest styles and
show people how to wear their most popular items or give the customer ideas as they are
shopping. In the entrance within the mall, they have clear windows, so people can easily
be attracted and drawn into their store.
Uncontrollable Variables
• Competition: Forever 21’s main competitors are Charlotte Russe, H&M, and
Aeropostale. There’s also this not well-known store in the mall and it’s called Closet
Signature. It’s fairly new, but like the rest of Forever 21’s competitors, they sell trendy
clothes for reasonable prices.
• Trading area influences: Since this Forever 21 is located in well-known mall, and is
surrounded by many other retailers, entertainment, and restaurants, it’s safe to say it’s in
the primary trading area. Most of the people who live in the area either go to the Ontario
Mills Mall or Victoria Gardens, they are not that far from each other. The
Ontario/Rancho Cucamonga area is great for shopping, and there are people who will be
willing to go specifically to this Forever 21, just for the mall and area alone.
Market Profile
Demographic: Forever 21 has a wide range of their demographics. Their main one, since the
beginning, remains to be young adult women in the middle class. They are trying to expand their

5. demographic to men, children and plus size women.
Behavior: Forever 21 isn’t really known for having the best of a certain product. So when people
go there, most of the time they are casually browsing. You mostly get a consumer who shops at
the store frequently, and makes routine shopping decisions at this store. Like myself, whether
I’m just looking around, or need something specific, Forever 21 is my go to store. I don’t
consider any other store, because I know that I can get what I need, and at a good price.
Technology
In Store
1. Music control
a. Consumers feel more relaxed and enjoy the shopping experience more when hear
a song that they like playing. When they feel more comfortable in the
environment, they are more likely to hang around and browse more.
b. Forever 21 can have a little touch screen at part of the store the see fit, and they
can layout a playlist for the consumers to choose from.
c. Retailers aren’t known for doing this, so this would make them stand out from
amongst the rest.
2. Personal Forever 21 Card
a. There are retailers who offer a store card that you use specifically at their store.
When you use them, you usually get rewards, and like a credit card, pay later.
Shoppers love to get the best deals, and that’s why a lot of people get them.
Sometimes when I’m low on money, I go to Kohls and use my Kohls card. If I
had a Forever 21 card, that would be more beneficial for me, since I’m a regular
customer.
b. If they started offering store cards, people will have more incentive to shop there.
c. None of their competitors have their own card, so that will set them apart.
3. App (Barcode Scanner)
a. Forever 21 has a part in their app where you can scan the barcode of an item in
the store, and it will show you if it’s available online. It’s useful when the store
doesn’t have your size, and you need the scanner to see if it’s available online.
When a consumer is really in love with a product, they will try to find a way to
have what they want.
b. That may work for some people, but like myself, I actually like trying on the
clothing. I suggest that they also add in other Forever 21 locations where they
have that item and in their size, so they don’t have to buy it online. That way the
customer gets their desired item right away, and doesn’t have to bother with
shipping expenses as well.
c. Having a bar code scanner accessible with you while you shop is a genius idea.
I’m not aware of any other stores that have that kind of app that you can use while
you shop.
Out Of Store
1. Website

6. a. When I’m too busy to go to the store itself, I go to their website and browse at all
the clothes. I look at what I like, and I get outfit ideas from their ‘Shop by style’
section. They show a bunch of head to toe looks from the stores clothing and
accessories. So when I’m finally able to make a trip to the store, I already have an
idea of what I want. But the problem is that sometimes, the items that are in the
website aren’t in the store.
b. It will be useful for all consumers if the website had a part where it showed you
the nearest store location your item can be found.
c. When I can’t find the item I want, I stray away and go to their competitors to look
for that similar item. If consumers like me knew the location of where our item
was, we wouldn’t need to go to the other competitors.
2. Social Media
a. A lot of Forever 21’s demographic is on social media. They are good at keeping
connected with their consumers. On their Instagram, they post high-quality
pictures of models in their clothing, the items on their own, and outfit ideas.
b. It would be beneficial for the consumer, if they could put in the description of
what items are in the photo, and how much they are. Sometimes I see a really cute
item or outfit, but don’t know the details about it.
c. If Forever 21 just did that alone, their customers would have more knowledge of
their clothing and the price.
3. Email
a. Forever 21 is good about keeping their email list updated on the new arrivals and
deals that are going on. Consumers that shop there regularly appreciate these
because that lets them know the best time to go shopping.
b. In order to make it a little more efficient, they should also say what locations are
having these promotions and new arrivals, because not all stores carry the exact
same items or deals.
c. This will clear up any confusion, between the retailer and customer, because most
stores deal with this problem. People hear about a certain sale or deal, but the
store they go to isn’t having it and they get upset. Forever 21 can help prevent that
for their stores, if they do this ahead of time, and not when the customer is already
at the store.

7. a. When I’m too busy to go to the store itself, I go to their website and browse at all
the clothes. I look at what I like, and I get outfit ideas from their ‘Shop by style’
section. They show a bunch of head to toe looks from the stores clothing and
accessories. So when I’m finally able to make a trip to the store, I already have an
idea of what I want. But the problem is that sometimes, the items that are in the
website aren’t in the store.
b. It will be useful for all consumers if the website had a part where it showed you
the nearest store location your item can be found.
c. When I can’t find the item I want, I stray away and go to their competitors to look
for that similar item. If consumers like me knew the location of where our item
was, we wouldn’t need to go to the other competitors.
2. Social Media
a. A lot of Forever 21’s demographic is on social media. They are good at keeping
connected with their consumers. On their Instagram, they post high-quality
pictures of models in their clothing, the items on their own, and outfit ideas.
b. It would be beneficial for the consumer, if they could put in the description of
what items are in the photo, and how much they are. Sometimes I see a really cute
item or outfit, but don’t know the details about it.
c. If Forever 21 just did that alone, their customers would have more knowledge of
their clothing and the price.
3. Email
a. Forever 21 is good about keeping their email list updated on the new arrivals and
deals that are going on. Consumers that shop there regularly appreciate these
because that lets them know the best time to go shopping.
b. In order to make it a little more efficient, they should also say what locations are
having these promotions and new arrivals, because not all stores carry the exact
same items or deals.
c. This will clear up any confusion, between the retailer and customer, because most
stores deal with this problem. People hear about a certain sale or deal, but the
store they go to isn’t having it and they get upset. Forever 21 can help prevent that
for their stores, if they do this ahead of time, and not when the customer is already
at the store.