The famous American chain Forever 21 will also close its chapter in Peru, as part of a regional divestment strategy that includes Colombia and Chile.
The company arrived in Peru in 2014 with its first store in the Real Plaza Salaverry shopping center, and shortly after it attacked the largest store of the brand in South America, in the Jockey Plaza with 3,200 square meters of surface area and three floors. This is precisely the store that has just closed its doors and where all merchandise has been liquidated, with prices less than US$3 and discounts of up to 50 percent.
According to the local press, this process will soon be extended to its store in Plaza Salaverry and follows the steps taken by the company in the other markets from which it is leaving.
The reason behind this event is that the fashion company could not maintain or recover the sales levels after the pandemic, amid the growing competition led by Zara and H&M.
And the chain belonging to the Spanish group Inditex currently has seven physical points of sale in the Peruvian capital, while H&M has increased its presence to 17 in Lima, Arequipa, Huancayo, Trujillo, Cusco and Cajamarca.
With the closure of its stores in these three countries, Forever 21 will complete its withdrawal from South America.
Forever 21’s decision for the region is not surprising. In September 2019, the company filed for Chapter 11 of the United States Bankruptcy Code, announcing that it would be closing 178 commercial properties in North American nations, Latin America and others located in Europe and the Facility. In February of this year, Forever 21 announced that it was leaving Chile, closing the last three of the six stores it operated. Recently, he also confirmed his withdrawal from Colombia.