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| A&F to cull US stores |
   
Posted Date: 21/02/2012
By Inside Retail
Abercrombie & Fitch, the outfitter of casual wear for teenagers and young adults, will close 180 stores in the US by 2015, this according to its chairman and CEO Mike Jeffries.
The Ohio-based company maintains a high profile at the upscale end of the casual wear market. By cutting down on the number of smaller outlets and at the same time making its flagship stores more visible, Abercrombie hopes to strengthen both its brand image and the market positions of its various brands.
The cull has already commenced with 71 of Abercrombie's 1014 stores in the US closed. Locations of the next round have not yet been announced.
The brand name image showcases body conscious clothing. However, the company does not believe its brand can prosper from being housed in smaller, less cost-effective outlets in out-of-way corridors of decaying malls.
With economic slump still affecting the US market, Abercrombie is turning its focus to Europe and Asia, believing overseas markets may be more responsive to the 'high-end yet casual all-American look'. After success in Europe, the company believes it can replicate such brand penetration in Asia.
"We see growing awareness and familiarity with our brands in China as a major opportunity," said CEO Mike Jeffries.
Store openings are now under way in Hong Kong, Singapore and mainland China. Hollister opened a store in Hong Kong in August last year. Abercrombie & Fitch opened a store in Singapore in December.
About 30 Hollister stores have been opened in Europe since 2007 but sales have recently started to decline as consumers are less willing to spend on upscale goods during the current debt crisis pessimism.
GB |
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