Abercrombie & Fitch‘s future is not looking bright. It is no secret that the US brand has faced some important struggles in the recent past. In December 2014 the CEO Michael Jeffries has left his office after 22 years in the role. He had personally created the concept behind the commercial strategy of the company. Young and good-looking boys and girls were the ambassadors of the brand that has conquered the teenagers’ affection worldwide.
But while this sexy attitude has not changed throughout the years the buyers have changed a lot. Those who were born with a smartphone in their hands do not seem to care that much about the exclusive (and expensive…) apparel sold in the Abercombie & Fitch stores. The millenials’ shopping behaviour and the tough competition of retailers like Zara, H&M and Uniqlo pushed the company to close hundreds of stores in the United States. This massive operation included the stores of the other two brands of the company : Hollister & Co and Abercrombie kids.
The company’s move aimed at control the huge losses on the balance sheet has recenlty brought Abercrombie & Fitch to lock the doors of the Hong Kong’s store. Apparently the formerly British territory is not considered to be a shopping destination anymore, sales are decreasing for a lot of the retailers in the city.
Moreover the decision of the company to leave Hong Kong follows the shuttering of more than 50 stores in North America in 2016.
If the prevetion of further losses in sales depends on the reduction of stores worlwide, this wave of unexpected closures could affect the European market too.
Will the Abercrombie & Fitch stores in Milan, London and Paris survive or are them up for the next round of cuts?