Abercrombie & Fitch (ANF) continues to struggle to regain its preeminence among specialty retailers in the mall. ANF has reduced the time until new merchandise gets marked down, and actually promoted its sale with in-store advertising (something I have never seen the brand do).
However, at the end of 2009, saw two dozen or so Ruehl store an expensive unfortunate damage 116M dollars). Comps has stubbornly to sell will be lower than estimate for months, yesterday - 19% December sales data looks very bottom - barrel than other retailers. Online sales support, tilt only 4%, compared to December 2008 done is just the only good news reports, tweener brand Hollister - 25% damages sales.
Looks like this holiday's parents and shopping center and avoid teenager perhaps did something, you know, as a family. Or at least avoided and action or stores like lindsay lohan avoid underwear.
My thoughts are continue underperforming said as the recovery has not yet fully solidification and consumer spending levels haven't come back because of the 2006/07 scale - back consumer credit. And those system condition the influence all retail/consumer spending, says is very sensitive, because it "defend guest mark" strategy, price company refused to lower the price in the whole economic recession.
As a result, the brand has lost many adherents (possibly permanently) to competitors American Eagle Outfitters or Aeropostale,who offered similar products for deeply discounted prices relative to Abercrombie. ANF will have to strongly demonstrate its value to US customers and differentiate its products in order to get on the teenage mall-goer’s radar again.
A long on ANF, at this point, is a bet on the company’s international strategy—which, as Dasan and I have discussed, appears to have kicked off extremely successfully. The jury is still out whether the brand will be able to successfully scale outside the U.S., though.
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