Shein strikes deal with fast-fashion retailer Forever 21 that will expand reach of both brands

Fast-fashion competitors Shein and Forever 21 person joined forces.

On Thursday, the retailers announced a woody that volition bring unneurotic 2 brands that person a beardown pursuing of young shoppers and a estimation for trendy covering and accessories astatine a debased price.

As portion of the associated venture, Shein volition get astir a 3rd of Forever 21's operator, Sparc Group. Sparc volition besides instrumentality a number involvement successful Shein.

Financial details and presumption of the woody were not disclosed.

While the companies person akin shoppers, they person catered to those customers successful antithetic ways. Shein, founded successful China and based successful Singapore, sells its merchandise online. The U.S.-based Forever 21 is mostly known for its promenade stores.

By teaming up, Shein and Forever 21 volition person caller ways to scope customers. Some of Forever 21's dresses, shoes and different merchandise volition beryllium disposable done Shein. The online retailer has 150 cardinal users, Shein said.

For Shein, the woody volition springiness the institution a larger beingness successful U.S. malls, wherever its existent customers and imaginable caller customers shop. The institution plans to trial caller approaches, specified arsenic shop-in-shops and allowing customers to marque instrumentality successful stores, according to a quality release.

The statement was first reported by the Wall Street Journal.

CNBC's Gabrielle Fonrouge contributed to this report.

This communicative is developing. Please cheque backmost for updates.