Forever21 joins hands with Dubai-based Sharaf Group

Forever21, the US retail chain catering to young women, has joined with the Dubai-based Sharaf Group to expand its interests in the GCC, and the first outlet opened at Deira City Centre yesterday.

This is the first overseas venture for Forever21 beyond its home base in North America, where it operates 174 outlets and has built up a sales volume of $500 million as of last year.

Another sidelight is the fact that it is attempting a foray overseas in its 20th year of operations.

"We chose the Gulf for the expansion as we do not have to deal with the complexity of the issue of garment quotas," said Lawrence Meyer, chief financial officer. "Any future move into markets such as Europe and Asia will be taken up when we feel we are ready. Above all, we are for expansion in a consistent manner."

In its UAE operations, the company will stick to the plan of churning out the latest fashionwear to the stores by the week. The majority of its labels are manufactured in the US by third parties, and some of it is sourced from Asia.

The Sharaf Group has plans to develop Forever21 outlets at in-mall locations in the UAE and beyond.

"There are a few mall developments in the country which will be ready over the next 12 to 18 months. Obviously, we will be looking at them very closely," said Atul Tawakley, executive director with the local franchisee.

According to him, Kuwait could be the next likely stop within the Gulf markets.

On Forever21's US operations, Meyer said: "The September numbers for our category were good and we are heading into a strong December sales period. We remain a privately held company - the intention is to go public when we feel the market is ready to accept the offering."