Are fast fashion retailers guilty of overexpansion?

An interesting RetailWire discussion about whether fast fashion retailers are discovering (just like traditional department stores) that there is too much of a good thing when it comes to square footage and store locations. Here’s my point of view:

Fast fashion retailers (especially Forever 21 and H&M) have expanded very quickly as real estate has become available during the past five years. (This includes Forever 21’s move into some vacated mall anchors.) They are probably finding — like other brick-and-mortar retailers — that there can be too much of a good thing when it comes to square footage. And some of those store openings have been in regional malls that are in decline anyway.

it doesn’t help matters — during this period of overexpansion — that fast fashion retailers are suffering from the same malaise as department stores. (Only the off-pricers seem somewhat immune right now.) Given weak demand for apparel, and the lack of a sales-driving trend, it’s tough for most fast-fashion stores to gain traction.


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