Earlier today, our contributor Retail-Insider reported that Forever 21’s less expensive concept store, Forever 21 Red will be opening in Canada next year. Just like many of you, we had the question, “how the heck could Forever 21 get any cheaper?!” We decided to get down to do a little snooping and here’s what we know about Forever 21 Red so far…
1. The first F21 Red opened earlier this year in South Gate, California.
The space’s size totals at a whopping 18,000-square-feet.
2. Prices are extremely low in the United States – we’re talking $1.80 for camisoles, $3.80 for t-shirts and $7.80 for a pair of jeans.
That’s right, you can get a pair of denim for less than an Essie nail polish.
3. Forever 21 is able to offer such low prices because they’re taking smaller profits.
A spokeswoman for Forever 21 told the New Yorker that the company takes smaller profit margins on the merchandise in F21 Red stores, and passes on the savings to customers.
4. Apparently the low prices don’t affect garment industry workers.
The same spokeswoman that spoke to the New Yorker said that “since 2007, Forever 21 has developed a Vendor Agreement, requiring that manufacturing facilities with which we do business adhere to the highest level of safety and human rights standards.”
5. However, many people are still skeptical since…
The labor department subpoenaed Forever 21 in 2012 for “sweatshop-like conditions,” minimum-wage and overtime violations which were uncovered in Los Angeles sewing factories by the U.S Department of Labour. Forever 21 said it “promptly responded to the department’s subpoena with information that resulted in a full resolution of the matter under investigation.”