Forever 21, the popular American fast-fashion retailer, is reportedly planning to withdraw its operations from Japan—again. Previously in 2009, due to underwhelming performance, the brand made a similar move only to return in 2021, hoping for a retail resurgence. However, internal financial issues and a challenging Japanese market have led to the decision to retreat once more. The impact on the workers and retail landscape in Japan is yet to be determined.
Retail departures are often seen as indicative of a tougher economic climate in Japan, in parallel with slow growth and a shrinking consumer base due to decreasing population. For employees of such businesses, such news is usually met with uncertainty and a job-hunting rush, as retail jobs are an important sector of the Japanese economy. Japan's strict business codes and conservation-oriented consumer behavior may have impacted Forever 21's ability to thrive.
In comparison to the US or EU, where store closures might occur due to the increasing dominance of online shopping, Japan's case may be more of a reflection of the economic climate and the unique market intricacies. This departure may also speak to the cultural contrast in fashion between the West and Japan, and the challenges foreign brands face in adapting to the local tastes.