The teen apparel retailer Forever 21 is joining the ranks of fashion retailers embracing the beauty category with the launch of Riley Rose. Do Won Chang, Forever 21 CEO, said in a statement, “These new, experiential spaces will be focused on accessories, cosmetics, and home goods for the millennial consumer.”
What the experts are saying
“Beauty has been doing very well in retailing’s challenging world,” retail investment research firm founder Jane Hali told CNBC in an interview. “Millennials obviously enjoy shopping for cosmetics in boutique environments such as Sephora and Ulta … Riley Rose can be another competitor in this space.”
“This is definitely a play to boost growth,” GlobalData Retail Managing Director Neil Saunders told CNBC. “The core business at Forever 21 is under pressure from slower growth, fickle consumers, and price deflation in a discount-driven market.” Beauty is a “logical choice” and one path forward for Forever 21, as the beauty sector promises higher margins, Saunders added. “I think this will help Forever 21, especially in the run up to the holidays.”
“Cosmetics are the last bastion of the department stores, and Ulta is accelerating its store growth,” Nick Egelanian, retail analyst and president of retail development consultants SiteWorks International, told Retail Dive earlier this year. “Department stores are under full-scale assault, and this is just the beginning.”
Read the full story in Fashionista.
Want to continue reading this article and others just like it?
Subscribe to BeautyMatter and access the most current beauty intelligence and news updates.
SubscribeAlready a member, login here.