That’s the takeaway from PYMNTS’ latest Shopping Apps Provider Ranking. As parents and students prepare for back-to-school shopping, the app that gained the most points in June is a retailer that closed all its stores in May but kept its online operations running and offered discounts of up to 70%.
The retailer is Forever 21. It filed for bankruptcy twice, once in 2019 and the last time in March of this year. As of May 1, all 354 stores in the United States were shuttered, with a smattering of international locations still open.
However, the retailer’s website is open for business, and fans of the fast-fashion apparel and accessories it sells are apparently keeping it going.
According to the Shopping Apps Provider Ranking, Forever 21 picked up eight points in June for a total score of 51. That put it off the pace of the leaders in the category, like Nike at 88, but is impressive for a company that has filed Chapter 11.
The PYMNTS Shopping Apps Provider Ranking page offers a monthly ranking of smartphone shopping apps, assessing them based on publicly available information and exclusive app usage data, helping users identify the top performers in the market. The ranking aims to provide precise insights into app performance, aiding stakeholders in making informed decisions.
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Forever 21 was founded in 1984 in California, according to an NBC News report. The retailer quickly became a mall staple for millennials seeking designer-inspired styles along with H&M and the pricier Abercrombie & Fitch. Its sales peaked at more than $4 billion in 2015. However, before the pandemic, the brand began to be eclipsed by online rivals, including ultra-cheap fast-fashion retailers like Shein and Temu that ship garments to U.S. shoppers from overseas, especially China.
More recently, Shein and Temu have been hurt by the tariff turmoil gripping global trade. That may have been a factor in the flight to Forever 21. How long the retailer can keep up the momentum remains to be seen.
“The final nail in the coffin” for Forever 21 was its disadvantage against foreign brands that make use of the “de minimis” exemption, a U.S. rule allowing goods worth less than $800 to pass customs with few import duties and inspections, said Sarah Foss, global head of legal at the financial firm Debtwire, per the NBC News report.
For now, Forever 21’s remaining inventory looks to be a hot item online.
Joining Forever 21 on the leaderboard for increased points in June was Macy’s, which posted a four-point gain for a total score of 57. Macy’s has also been leaning on discounts and joined Amazon and Walmart+ in a summer sales event, this one called Black Friday in July. It announced its top back-to-school trends Monday (July 28).
In May, the company reported first-quarter earnings results that exceeded its prior guidance. Macy’s achieved net sales of $4.6 billion in the quarter.
“Our first quarter results give us confidence that we have the right strategy and team in place to navigate the current environment while we continue to invest in our customer on the path to returning Macy’s to sustainable profitable growth,” Chairman and CEO of Macy’s Tony Spring said in an earnings release.
Rounding out the top-three gainers of the month was Adidas, which added three points and reached a total score of 73. The company had a sales event in June, offering up to 40% select styles, which could have been a driver behind its three-point gain. It’s also offering up to 40% off back-to-school styles through Aug. 8.
Adidas announced during a first-quarter earnings report in April that it would likely be raising prices due to tariffs.
“Cost increases due to higher tariffs will eventually cause price increases, not only in our sector, but it is currently impossible to quantify these or to conclude what impact this could have on the consumer demand for our products,” Adidas CEO Bjørn Gulden said in an earnings release.
