Photo - Abercrombie & Fitch
After years of negative comps, Abercrombie & Fitch (A&F) is in the early stages of a rebranding effort aimed at making it the preferred apparel brand of 18- to 25-year-olds. Unfortunately, there is scant evidence the chain will succeed after posting a 13 percent decline in same-store sales during the fourth quarter when it launched the largest advertising campaign in the company’s history.
For years, A&F promoted its business with images of scantily clad teenagers. The chain, under CEO Mike Jeffries, was criticized for excluding consumers and prospective employees who did not fit its beautiful teen image. Ultimately, the A&F lost the cool factor that once had teens wearing clothing emblazoned with the company name. Mr. Jeffries stepped down in 2014.
Last month, A&F named Fran Horowitz, the chain’s president and chief merchant, as CEO. Speaking on yesterday’s earnings call with analysts, Ms. Horowitz said the chain’s rebranding effort fell short during the fourth quarter.
“While the campaign generated over one billion media impressions, it did not convey clear enough brand identity to our customer and did not have a meaningful impact,” she said (via Seeking Alpha). “Based on our learnings we understand that we need to sharpen the brand identity, create an invitational message and evolve the creative.”
A&F’s CEO maintained that the chain is on the right track with its messaging. She said more than 80 percent of the chain’s sales come from customers 18+. She also pointed to other areas of opportunity, including A&F’s new prototype store, which opened at the Polaris Fashion Mall in Columbus, OH last month. The 4,860-square-foot store, which features denim and fragrance shops-within-the shop and new fitting room suites with individual "capsules" for privacy, is one of seven the chain plans to build this year.
Neil Saunders, managing director of GlobalData Retail, doesn’t see the chain’s marketing coming together, CNBC reports.
"Not only is the message confusing and opaque, but the promise of change that it suggests is not entirely delivered on by stores, which look and feel the same," Mr. Saunders told investors.
- Abercrombie & Fitch's (ANF) Fran Horowitz on Q4 2016 Results (Earnings Call Transcript) – Seeking Alpha
- Abercrombie & Fitch insists it's not a teen retailer as it struggles to shed its sexy reputation – CNBC
- Abercrombie’s Marketing Shift Fails to End Sales Slump – The Wall Street Journal
- Will consumers buy a new vision for Abercrombie & Fitch? – RetailWire
- Abercrombie is abandoning teenagers – RetailWire