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Shein strikes deal with Authentic Brand's Sparc Group

Illustration of a dollar sign being sewn into a piece of fabric with a needle and thread.

Illustration: Brendan Lynch/Axios

Shein and Sparc Group struck a strategic partnership, with Shein acquiring a one-third interest in the retail operator and Sparc becoming a minority shareholder in Shein.

Why it matters: The deal brings together two of the most important players in retail.

Details: Shein will offer what it calls "customer-focused experiences" inside Forever 21 stores, while Forever 21 will be distributed on Shein's platform.

  • No additional terms were provided.

Catch up fast: Sparc may not be a household name, but the brands it runs the retail operations for include AĆ©ropostale, Brooks Brothers, Eddie Bauer, Forever 21, Lucky Brand, Nautica and Reebox.

  • It oversees nearly 4,300 stores and generates $12.7 billion in global retail sales.
  • Sparc is jointly owned by brand management company Authentic Brands Group and mall operator Simon Property Group.

What they're saying: In their announcement, the companies said the partnership will let them accelerate product innovation and explore new business strategies.

šŸ’­ Richard's thought bubble: This is going to get interesting. The combination is going to prove daunting to competitors. The two names are really taking over apparel retail, and have the bricks plus the clicks.

Shein and Authentic declined to comment further.

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