Analysts say the closure of Forever 21 stores across Canada isn’t a sign that malls are a dying breed, but that retail competition is stiffer than ever and companies need to innovate to survive.
The Los-Angeles based clothing retailer plans to close all 44 of its stores in Canada along with 168 in the U.S. as the chain undergoes bankruptcy proceedings.
Several of those stores are in B.C., including a two-storey location inside Burnaby’s Metropolis at Metrotown and a massive location in Surrey’s Guildford Town Centre.
Despite the empty storefronts that will be left behind, retail analysts aren’t concerned about the health of malls.
“We found in the last couple of years that actually with some exceptions the malls are improving their productivity,” said Mark Startup, vice president at the Vancouver office of the Retail Council of Canada.