In recent months, we've been looking at the steps high street stores are taking to market themselves more effectively in a bid to maintain footfall and sales. Take a look at Republic's Social Dressing room, or our five day look at Retailtainment for examples.
For today's innovative new step however, our attention turns not to the marketing aspect, but to the whole ethos of the store and the business model it's using. Our case study - American based Forever 21, who have opened their most recent UK store at Westfield Stratford.
Forever 21 has a different business model to most; rather than looking at fashion and following the season, their entire business model relies on a 'here today, gone tomorrow' approach to stock. Forever 21 relies on a speed strategy, whereby new stock arrives every day of the year, they never replenish an item and they won't order it in again. What's more, the stock may vary from store to store, depending on the quantity available and the consumer demand.
The question is, does it work? The answer: apparently so! When the Westfield Stratford store opened, the store managers had to open the store early just to cope with the crowds waiting outside; what's more, with a £2.23bn turnover, the brand is incredibly successful. It appears that consumers are enjoying the different approach, hastening to buy the item in case it has sold out within a few hours. It doesn't seem to be denting the brand either; Forever 21 is as much a part of the American Mall as any other brand and is clearly identifiable amongst it's competitors. The success is so great, that many people are hailing it as the saviour of the high street, where online shopping can't compete with the turnover speed and changing stock.
I do have to admit I'm a little sceptical however; whilst it might just be working for Forever 21, what happens if all the stores do it and the novelty wears off? At what point will consumers revert to demanding what they want, when they want, regardless of the number in stock. What happens when the novelty wears off and the consumers revert to buying online for the convenience?
Whilst I think it's an excellent model and is fantastic for the brand, I don't think we'll see this one saving the High Street, maybe just making it more interesting...
Comments