Forever 21 announced that they are closing their doors in Canada. On top of that, the popular fast-fashion behemoth has filed for bankruptcy in Canada and the USA.
In a statement, Forever 21 stated that they have “made the difficult decision to discontinue further financial and operational support for Forever 21 Canada as [they] reposition the brand and global business to adapt to the current retail environment.” They did not provide an exact timeline on when stores would close, but that all Canadian stores will eventually be shut down.
Canadian shoppers will, however, still be able to order their products online, albeit from the US site. This follows a trend that we have seen over the past decade. Retailers can no longer complete with the online shopping space. So much so that retail giants are going bankrupt one-by-one. Sears, Toys ‘R’ Us, and now Forever 21 have closed their doors for good.
Amazon has built itself into the biggest company in the world, and the blueprint for the future of consumer spending. Amazon controls so much of the $ spent online its almost comical, and they did it by focusing on eliminating costs retailers are burdened with, and making things cheaper and easier for the customer.
Canadians, like many, are being enticed by the digital shopping experience. Retailers can’t compete with savings eCommerce companies offer, and that’s becoming more and more apparent. If companies don’t close up shop altogether with their physical locations, then they close stores and shift all sales online. The idea of having a few showrooms open, but all sales funneled through their website offers further savings, and usually a reasonably favorable shopping experience.
Younger people definitely prefer to buy online, while older people are coming around to it. A lot of money has been invested by companies to enhance the digital shopping experience and its working.
Check out the slideshow for other popular stores that have been forced to shut down.