At the first signs of decline, Abercrombie & Fitch held fast to their brand and declared that they wouldn’t compromise their price point. They believed that their loyal customers would hang in with them. Well, the truth hurts.
The fact is teens are feeling the pinch too and Abercrombie saw a 19% decline in December. Their hugely popular Hollister store, known for its very specifically designed store environments, had a 25% decline in sales according to the Wall Street Journal.
The article suggests that the turn may not have as much to with price as it does with changing fashion tastes. However, similar lower priced retailers like Aeropostale saw a 10% increase. This has caused Abercrombie to examine, not only it’s pricing, but what it takes to satisfy their target shoppers. Unfortunately, they waited to make that connection and are late to market with the fashions their customers desire.
It seems the tables have turned and rather than pushing brands and trends on the shopper (the cool kids buy our stuff) retailers need to find out what the shoppers want and give it to them (just blue jeans will do).
This is an interesting peer into the future and yet another lesson from the economy.
One Comment
I’m suprised by this. The queues outside Hollister, in Westfield London have been relentless since it opened in late 2008.