Dive Brief:

• Fast fashion retailer Forever 21 is opening a new store branded F21 Red that will offer more items at even cheaper prices.

• The first F21 Red opens May 3 in Los Angeles.

• Basement prices include $1.80 for camisoles, $7.80 for jeans, as well as some items found in Forever 21 stores.

Dive Insight:

While fast-fashion competitor H&M is launching a higher quality, higher priced concept with its COS stores, Forever 21 is going in the other direction. Its launch of F21 Red takes prices to a whole new, lower level. While teens do seem to have tight budgets, increased concerns about the provenance of cheap clothing may cause them to question the wisdom of shopping at a retailer that is squeezing prices this much.