Abercrombie's Problems Are Bigger Than the Economy
Abercrombie & Fitch may have more problems than trying to sell expensive clothes to teenagers in a weak economy. The Wall Street Journalreports that some retail analysts think the brand's fashion is also stale.
Retail analysts said Abercrombie's troubles go beyond pricing to its once unerring sense of style, a problem that could be trickier to fix. The logo T-shirt and torn jeans ensemble that Abercrombie made the unofficial school uniform a decade ago has played out, said Kimberly Greenberger, a retail analyst with Citigroup Inc. who tours malls every two weeks to assess trends. That misstep has created an opening for lower-priced competitors such as Aeropostale Inc. and American Eagle Outfitters Inc., which reported December sales gains of 10% and 7%, respectively.
"The look is stale," Ms. Greenberger said. "They need to figure out what the next hot trend is and push that, because that's the only way out of this downward spiral."
The Wall Street Journal article says sales at stores open at least a year for Abercrombie plunged 19% in December compared to the year before. Even its lowest priced brand, Hollister, suffered from plunging sales. Hollister's sales dropped 25% in December. The article says Abercrombie is making changes. Hollister has a new line of new dresses out for spring. The WSJ also says the CEO Michael S. Jeffries has personally taken control of selecting the company's new female clothing offerings.
We did notice a welcomed change recently when walking past an Abercrombie & Fitch store at the mall. There was no longer deafening music coming from inside the store. It is possible the store had simply blown out its speakers, but if it is really a change it is a good one. Unfortunately, the smell of cheap cologne coming from the store was still overwhelming.
Abercrombie & Fitch may have more problems than trying to sell expensive clothes to teenagers in a weak economy. The Wall Street Journal 
