With closures and reports of the bankruptcy of popular retailers like Forever 21, it begs the question – where are customers going?
Foot traffic in malls and brick and mortar stores are dwindling, while online shopping is expected to hit record numbers of just over four trillion U.S. dollars in 2020. Mixed with a lower interest in cheap fast-fashion pieces, the industry is showing consistent drops in sales.
But, how did fast fashion get to the top in the first place? Fast fashion giants thrived through the ability to churn out trendy pieces quickly, price it extremely low, and have it in stores in a matter of days. With the quick production of low-quality products, it’s a guarantee that landfills will continue to grow with fast-fashion waste. And society is taking note.
Fast-fashion giants can no longer rely on simply focusing on volume. It results in popular companies like H&M producing more than they can sell, with $4.3 billion in unsold inventory.
According to a Nielson survey, 48% of U.S. consumers say they would definitely or probably change their consumption habits to reduce their impact on the environment. And people are proving it with their wallets. In 2018, $128.5 billion was spent on sustainable goods.
Younger generations are taking notice of what fast-fashion is doing to the environment and have taken their spending power elsewhere. They are more conscious of their consumption, opting for second-hand shops like Poshmark and ThredUp in an attempt to go zero waste.
Can fast-fashion be saved? It depends. They must show a willingness to change with consumers’ tastes. There have been some attempts such as H&M’s Garment Collecting program and Forever 21’s recycling program. It gives consumers a way to feel morally righteous about buying more than what they need. But, as long as their products are still seen as disposable, their efforts will not be respected by consumers.
Here are just a few fast-fashion retailers feeling the hit in 2020:
Gap
Gap will be closing up to 230 stores in 2020. The company reports that they will have smaller-sized stores after seeing a 5% decrease in holiday sales in 2018.
Forever 21
This fast-fashion giant filed for bankruptcy in September 2019 and plans on closing up to 178 retail locations in 2020.
Macy’s
Macy’s will be closing at least two dozen stores and one Bloomingdale’s location at the beginning of 2020.
Victoria’s Secret
This may not come to a surprise to many, especially after the backlash from their 2018 show and transphobic comment by their CMO Ed Razek. Victoria’s Secret announced that they will be shuttering 53 stores.
New York & Company
After a poor holiday shopping season, the company is closing 19 New York & Company locations, four Fashion to Figure stores, and four New York & Co. outlets.
Sears
Yes, there are still a few Sears retail locations hanging around. But, from reports, it won’t be for much longer. Sears filed for bankruptcy in October 2018 and continues to struggle, closing an estimated 51 stores in 2020.
JC Penny
Another once-favored department store is feeling the effects. After closing 27 stores in 2019, more will likely be shuttering their doors for good in 2020.
Abercombie & Fitch
This company has faced its own round of controversies, from excluding large women to discriminatory hiring practices. In the past 8 years, Abercombie & Fitch has closed 475 locations and an additional 40 by February 2020.
Chico’s
Chico’s has announced in early 2019 that they will be closing 250 locations over the next three years. This includes 100 Chico’s stores, 90 White House Black Market stores, and 60 Soma stores. As of November 2019, they have closed 49 locations, with more closing in the next two years.