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Article 1Abercrombie & Fitch, once known as the coolest brand on the block, has lost its touch with its young shoppers for quite some time. This market uses the Internet to their advantage by researching the latest trends and shopping online. Ultimately, these consumers settle for lower prices over quality.

As the retailer struggles to win back its young market, fast fashion retailers like H&M and Forever 21 have taken the opportunity and stepped in to meet the needs and demands of this group for trendy fashion at a low price.

As a result, A&F is changing its strategy to appeal to its target market. In doing so, the retailer plans to get more competitive on pricing, comparable to fast fashion retailers. While closing 70 stores in the U.S., A&F will expand on the international level with 16 more stores. Also included in the plan is to reduce lead times, which translate to cost reduction and profit gain. In addition, the retailer is proposing to improve fashion in order to stay on top of current trends. Finally, A&F plans to improve/increase marketing to further help the retailer reach its ultimate goal of drawing young shoppers to its brand.

Discussion Questions:

1. Why has A&F lost its Mojo?

2. What is it doing to get it back?

3. Given its current situation and plans for the future, would you want to start your career in an executive training program at A&F?


Source: Al McClain, Retail Wire, March 4, 2014