Abercrombie Is Making Three Drastic Changes To Lure Back Teens
The teen apparel maker's same-store sales fell 10% in fiscal 2013, and in the most recent quarter, sales were down 7%.
The company is struggling to lure fickle teen shoppers, who are spending less on apparel than previous generations.
The company is taking three steps to bring back customers. They are:
1. Ditching the logo business. The company said on an earnings call Thursday that its logo business would be reduced to "practically nothing" in North American markets by next spring. This is a seismic change in Abercrombie's business strategy. Loud logos, as pictured below, have been central to the teen apparel maker's fashions for decades.
Reuters3. Abercrombie is trying to turn its Hollister brand into a fast fashion retailer, like Zara and Forever 21. The transformation will mean lower prices and more styles for Hollister shoppers. The company is making the transition by beefing up its U.S.-based supply vendors to decrease the turnaround time for new fashions.