Why Forever 21 is struggling to maintain its spot on fashion street

Eight years and three partnerships later the American fast-fashion retailer has hit a fresh hurdle in the country. What went wrong?

Early this week, Aditya Birla Fashion and Retail (ABFRL) announced that it was downsizing Forever 21. "Assumptions have changed for the Forever 21 business," Ashish Dikshit, managing director of ABFRL's Madura Lifestyle business said in an investor call. Store resizing and a new store model would need to be in place for the brand he added. What has gone wrong with the American retail brand that entered the country around the same time as Zara (2010) and way before H&M (2015)? Inefficient inventory management and despite spending eight years in the country, a failure to understand the price-value equation are