Thousands of teenage girls showed up to greet U.S. clothing chain Forever 21 as it launched its first store in Israel Monday. The discount fashion retailer opened the doors at Tel Aviv's Azrieli Center Mall at 8 P.M.

The chain has 480 outlets around the world. Its latest store has 1,500 square meters of retail space and was launched at an estimated NIS 5 million investment. The chain plans to open another five or six stores in Israel over the next two years, sources have told TheMarker.

Company sources said prices would be based on U.S. prices before tax, plus $1.50 and based on an exchange rate of NIS 4 to the dollar. This means local prices will be slightly higher - TheMarker checked some products and found them priced at 10% to 22% more than in the United States.

Many international chains charge more in Israel than in the U.S. and blame the price differences on the cost of importing.