Forever 21's "Twenty-One Daily Specials" - Just Another Name for Clearance

Clothing chain Forever 21 is known for their very affordable, trendy young women's clothing. With basic teeshirts starting at only $4.80 to dresses that top out in the $30 range, it is no surprise that Forever 21 has no trouble bringing in customers. However, it appears that they are desperate for more customers for their online store: a new section on the Forever 21 website (www.forever21.com), named the "Twenty-One Daily Specials", offers a 20% discount on a seemingly random selection of items from the Forever 21 catalog. The twenty-one items change daily, so the website urges customer's to "think fast!!!" and purchase the items immediately.

At another clothing chain selling to the same demographic, such as Hollister Co., would have much more success than Forever 21 will with this new daily specials section. Why? The low prices of Forever 21's products mean that 20% off is usually only $2 to $4. Because the purchases must be made online, this money will be spent on shipping, so unless a customer really loves an item, it most likely isn't worth the money to get it shipped. At Hollister Co., which sells basic tank tops starting at around $15, a 20% discount could save customers anywhere from $3 to $12 plus dollars, a significant amount. Because Hollister Co.'s clothing is more expensive, people are more likely to be motivated to buy an item they must not totally love just because it is on sale.

When looking at the selection of item's in the "Twenty-One Daily Specials" section, it appears that the items are one step away from making it to the "Sale" section. On this particular day, a sheer "Silk Safari Blouse" has been marked down from $22.80 to $18.24. It is highly unlikely that Forever 21 was selling this see-through top like hot cakes; instead, they are probably trying their best to get rid of their entire stock of this shirt. Is a $4.56 discount enough to make the customer decide that they really want this shirt? Probably not.