Following a reported $26.7 million loss in the second quarter for Abercrombie & Fitch, the preppy retailer is finally reconsidering the price points of its collections. Geared toward a demographic of sexy and/or strapping tweens and twenty somethings, the apparel company has now suffered double digit sale declines from the past three consecutive quarters. Executives of the company are now realizing the detachment that has occurred between the supply and demand of their product. Other indications of an ever growing chasm between the company's cost and value include the shuttering of one of the company's offshoot brands, Ruehl, earlier this summer and the less than welcoming response the brand's Hollister flagship has been receiving in Soho. CEO Michael Jeffries, in trying to learn from these recent experiences, explained his mantra in redirecting the company's focus with, "We are young. We are sexy. We are controversial at times. That’s what we know how to do and that’s the business that we own here and are comfortable that we can around the world."
The price cuts will start to pop up starting next quarter and will be most apparent, according to Jeffries, at Hollister and Abercrombie Kids. Jeffries also said the company is not planning to open anymore American flagships but will be gearing up to, "accelerate the opening of international Hollister stores in 2010 and 2011." Apparently the all-American look is much more en vogue in places outside of America. More than 270 A&F leases are up for renewal in 2011, and from what the figures say now, the chain is more than likely to shut a few of its scantily-clad guarded doors.
Article Source: newyorkmag, WWD
Photo Source: newyorkmag