4 reasons why Aeropostale lost its cool (2024)

Aeropostale, once a popular mall destination for teens, has filed for Chapter 11 bankruptcy protection, becoming the latest victim in the fast-changing retail landscape.

Aeropostale joins the ranks of teen retailers looking to reorganize under bankruptcy protection including Wet Seal Inc., Pacific Sunwear of California and American Apparel. And like many of these ailing merchants, Aeropostale had been struggling for several years.

The chain has racked up three years of annual losses and five straight years of annual sales declines for a key measure. Annual sales shrunk to $1.5 billion last year, down nearly 40 percent from $2.4 billion in 2010.

Its shares were delisted by the New York Stock Exchange last month, after they were trading for 15 cents. Aeropostale's stock hit an all-time high of $32.24 in 2010.

Since the Great Recession, many teen chains have suffered because of fierce competition from the likes of online players and fast-fashion retailers such as Forever 21. But they're also wrestling with seismic changes in shopping behavior. Teens have always been fickle shoppers, but these days they're shopping differently, mirroring broader trends in the retail industry. They're no longer roaming around at the mall but researching deals and fashions on the Web before they go. And they're not looking to be carbon copies of their peers; instead, they're embracing individualistic styles.

Aeropostale was a bright spot during the downturn, as shoppers saw it as the cheapest option compared to the two other teen industry stalwarts: American Eagle Outfitters and Abercrombie & Fitch. But as the economy improved, teens went back to some of their favorite brands, though they still wanted fat discounts. Both American Eagle and Abercrombie have seen their sales improve recently as they have worked hard to reinvent their businesses. American Eagle, for example, has been able to scale back its discounting as it overhauled its fashions, including adding more stretch to its jeans. But Aeropostale has been slow to adapt to these changing times.

"It has become increasingly clear that Aeropostale's business model is broken and cannot be fixed without major restructuring," writes Neil Saunders, CEO of retail research firm Conlumino in a report published Wednesday.

Here are four challenges that Aeropostale has struggled with:

- TEENS DON'T WANT TO LOOK LIKE EACH OTHER: It used to be that teens wanted to dress exactly like their peers and were fixated on sporting anything with a logo from their favorite brands. Not anymore. Teens, inspired by Instagram and the like, are looking to personalize their looks, and prefer to grab items from different stores. That has been a big problem for Aeropostale, whose sales had been driven by logoed merchandise. Aeropostale started to shed its logoed clothing and began focusing on trendy items about three years ago. It teamed up with names like stylish American video blogger Bethany Mota. But its efforts were too little, too late. The new looks never failed to gain traction with shoppers.

- AEROPOSTALE COULDN'T WEAN SHOPPERS OFF PROMOTIONS: Teens like deals and they like to research online before shopping at the stores. But they're also willing to pay full-price for something they covet. However, Aeropostale was forced to constantly discount the entire store by as much as 70 percent off because they couldn't get shoppers to buy the clothes. "They were too caught up in the promotions," said Ken Perkins, president of Retail Metrics, a retail research firm.

- THE CHANGING MALL: Aeropostale and other retailers benefited from being at the epicenter of where teens shop: the mall. But increasingly, kids are shopping on their smartphones and going to the mall for specific items, not just to roam around. And a rash of bankruptcies of mall-based retailers have left some holes and hurt traffic at the shopping centers, says David Tawil at Maglan Capital, a hedge fund that focuses on distressed securities. That's hurt Aeropostale, which is now closing 113 of its 739 U.S. stores, or 20 percent of its store base. As of early January 2014, it had 1,100 stores. Analysts also say Aeropostale hasn't done enough to make their stores more exciting to shop. And some believe Aeropostale will need to close even more stores to restore profitability.

- INTENSE COMPETITION: Teens are buying their clothing and accessories at lots of different places, from Forever 21 to off-priced stores like TJ Maxx and online. And the competition is only getting fiercer. Amazon.com is quietly expanding its private-label fashion business, while teen stores face new rivals from overseas. United Kingdom-based Primark, which sells trendy cheap items like $7 jeans, made its first foray last year in the U.S.

4 reasons why Aeropostale lost its cool (2024)

FAQs

Why is Aeropostale not popular anymore? ›

Experts tell Retail Dive that Aeropostale sealed its fate by hewing too closely to trends set by the so-called “other two As'”—especially Abercrombie & Fitch, which under then-CEO Mike Jeffries virtually defined teen fashion in the previous decade—and failed to develop a vision of its own.

Who owns Aeropostale? ›

Is Aeropostale a good brand? ›

Aéropostale has a consumer rating of 2.69 stars from 112 reviews indicating that most customers are generally dissatisfied with their purchases. Aéropostale ranks 43rd among General Apparel sites.

How many stores does Aeropostale have? ›

How many Aéropostale retail stores are there in the United States? There are 503 Aéropostale retail stores in the United States as of January 03, 2023. The state with the most number of Aéropostale locations in the US is Texas, with 53 retail stores, which is about 11% of all Aéropostale retail stores in the US.

Is Aeropostale closing down? ›

Five Aeropostale stores are closing in California. The retailer said it plans to emerge from Chapter 11 as a “standalone enterprise” with fewer stores and increased operating efficiencies.

Is Aeropostale making a comeback? ›

Aéropostale is back in business. After filing for bankruptcy in May and getting acquired by Authentic Brands Group, Simon Property Group, and General Growth Properties in September, the teen retailer this week will reopen its 500 stores in the US.

What does Aeropostale mean in English? ›

aeropostale (plural aeropostali) (relational) airmail.

How ethical is Aeropostale? ›

Its labour rating is 'very poor'. None of its supply chain is certified by labour standards which ensure worker health and safety, living wages or other labour rights. It received a score of 0-10% in the 2021 Fashion Transparency Index.

What age wears Aeropostale? ›

Teens to young 20's. Most of them are targeting teens, but their jackets and graphic tees are perfect for people thats done with their teenage years :) I would say 16 and under. Except if you want jeans or t-shirts but a lot of the style is more directed to teenagers.

What is Aeropostale dress code? ›

The dress code at Aeropostale is casual for retail employees and business-casual for management and corporate positions.

When was Aeropostale most popular? ›

Aeropostale's stock hit an all-time high of $32.24 in 2010. Since the Great Recession, many teen chains have suffered because of fierce competition from the likes of online players and fast-fashion retailers such as Forever 21.

How is Aéropostale doing? ›

Five years after bankruptcy, Aeropostale and parent company ABG have slowly been working to turn the brand's prospects around, starting with a renewed focus on the Gen Z consumer. Thanks to a focus on denim and some timely virality on TikTok, the brand is in a much better place now than in 2016.

Is Aéropostale fast fashion? ›

Aéropostale is one of the largest American retailers of casual apparel and accessories. It was founded in 1987 in Thousand Oaks, California, and creates fast fashion for young women and men. Aéropostale makes clothing, accessories, shoes, swimwear, beauty, watches, eyewear, fragrances, and jewelry.

Who is the CEO of Aéropostale? ›

Julian Geiger serves as the CEO / President of Aeropostale.

Does Aéropostale own forever 21? ›

Authentic Brands is the owner of Aeropostale, Brooks Brothers, Juicy Couture, Forever 21, Barneys New York, Airwalk, Frederick's of Hollywood, Lucky Brand, Nautica, Sports Illustrated, and Tapout.

Are Aéropostale and Forever 21 the same company? ›

Apparel chain operator Authentic Brands Group (ABG), owner of Aéropostale, Forever 21, Lucky, Barneys New York, and more than 30 other brands, officially dropped its plans for an initial public offering, according to its filing with the Security and Exchange Commission (SEC) and other reports.

Does adidas own Aéropostale? ›

Reebok was absorbed by Authentic Brands Group, an American holding company whose wide portfolio of over 50 brands also includes Aéropostale, Nautica, and Volcom. Adidas announced in August 2021 that it would sell Reebok to ABG for $2.5 billion; the acquisition was finalized Tuesday.

Does Aéropostale accept returns without tags? ›

Returns will not be accepted without an original sales or gift receipt. Items purchased online and picked up in an Aéropostale store must be exchanged or returned to a US store and must be accompanied by the original pickup receipt. All returns will reflect original discounts and promotions.

Who is Aéropostale target market? ›

About Aeropostale
Aeropostale Overview
SegmentationRetailer of casual apparels and accessories
Target Market14-to-17-year-old young women and young men, Recently, it has been targeting adults over the age of 18 as well.
PositioningBrand for the teens
6 more rows
Apr 26, 2020

What brands are coming back? ›

Comeback Brands
  • Birkenstock. It's a long way from San Francisco health food stores to the Paris catwalk, but the 244-year-old German brand has made that unlikely journey, tripling its sales to $800 million and growing its revenue tenfold in the past five years. ...
  • Levi's. ...
  • Best Buy. ...
  • Apple. ...
  • T-Mobile. ...
  • Twitter.

Is Aéropostale in Mexico? ›

Some of the countries where they can be found include the United Arab Emirates, Bahrain, Saudi Arabia, Oman, Kuwait, Qatar, India, Egypt, Greece, Turkey, Philippines, Mexico, Panama, Guatemala and Chile, and the brand continues to expand to other international markets.

Is Aéropostale real? ›

Founded in 1987, Aeropostale was a popular clothing brand company whose wares wiggled their way into malls all over the United States. It's hard to overstate just how ubiquitous their clothing was in high schools by the late aughts if you weren't around to remember it.

What does Hollister mean? ›

The surname dictionaries usually reference a link between Hollister and Hollier and variously describe its meaning as relating to Old English or Old French words meaning "dweller by the holly tree" or "whor*monger".

Is Aeropostale child labor? ›

Aeropostale. Aeropostale is one of the largest American retailers of casual apparel and accessories. The company is known to use sweatshops for the fabrication of its clothing items. It has been involved in child labor scandals as well.

What is the least ethical brand? ›

The most unethical clothing companies are mainly popular multinational and e-commerce brands like Victoria's Secret, GAP, Fashion Nova, Uniqlo, Forever 21, Nike, Adidas, Disney, H&M that have been exposed to multiple unethical practices – including labor exploitation and/ or forced labor.

Is Aeropostale Vegan? ›

Made with vegan, cruelty-free & paraben-free ingredients.

What size is a 000 in jeans? ›

Girls Jeans & Pants All Sizes
XX Small*X-Small
Size0000
Waist22.524.5
Hip32.534.5

What is Aeropostale known for? ›

Aéropostale, is an American shopping mall–based retailer of casual apparel and accessories, principally targeting young adults and teenagers through its Aéropostale stores. Aéropostale maintains control over its proprietary brands by designing, sourcing, marketing, and selling all of its own merchandise.

Do Aeropostale shirts run small? ›

I have found that they run small but then they seem to get baggier as you wear them. Working from Aero for five years, our sizes do run a bit small but bigger than American Eagle. However, with Aero's , after washing them, they kind of shrink. but stretch back out after wearing .

Does Aeropostale allow colored hair? ›

What is the employee dress code? Dress casual and make sure your clothes are neat. Do they allowed colored hair? Yes they do wear ear pieces!

Does Aeropostale allow tattoos? ›

Tattoos are allowed as long as they are appropriate. Stylish basically mean you are not dressed in business attire, yet you're not too laid back either. What you regularly wear is perfect, but following today's trends will help sell the brand.

Does Aeropostale allow piercings? ›

Aeropostale does allow facial piercings.

Do Aéropostale jeans shrink? ›

Yes after awhile of washes it'll shrink, people say to put your clothes in cold water to avoid shrinkage.

Is fast fashion cheap? ›

Fast fashion can be defined as cheap, trendy clothing that samples ideas from the catwalk or celebrity culture and turns them into garments in high street stores at breakneck speed to meet consumer demand.

What popular brands use fast fashion? ›

Major players in the fast-fashion market include Zara, H&M Group, UNIQLO, GAP, Forever 21, Topshop, Esprit, Primark, Fashion Nova, and New Look. Many companies are both retailers and manufacturers, though they often outsource the actual production of clothing.

What stores does Aeropostale own? ›

SPARC Group. and accessories in key markets worldwide for iconic brands including Aéropostale, Brooks Brothers, Eddie Bauer, Forever 21, Lucky Brand, Nautica and Reebok.

What age group wears Aeropostale? ›

Teens to young 20's. Most of them are targeting teens, but their jackets and graphic tees are perfect for people thats done with their teenage years :) I would say 16 and under. Except if you want jeans or t-shirts but a lot of the style is more directed to teenagers.

Are Aeropostale and Forever 21 the same company? ›

Apparel chain operator Authentic Brands Group (ABG), owner of Aéropostale, Forever 21, Lucky, Barneys New York, and more than 30 other brands, officially dropped its plans for an initial public offering, according to its filing with the Security and Exchange Commission (SEC) and other reports.

Is Abercrombie not popular anymore? ›

Abercrombie & Fitch has since rebounded — it's trendy again, but if you check out the website, you'd be hard-pressed to find a moose or an "A&F" anywhere on the clothes. After the company cut back its number of stores — it closed 450 between 2010 and 2018 — and after its significant rebranding, shares began to soar.

What are Aeropostale sister stores? ›

Authentic Brands is the owner of Aeropostale, Brooks Brothers, Juicy Couture, Forever 21, Barneys New York, Airwalk, Frederick's of Hollywood, Lucky Brand, Nautica, Sports Illustrated, and Tapout.

Does adidas own Aeropostale? ›

Reebok was absorbed by Authentic Brands Group, an American holding company whose wide portfolio of over 50 brands also includes Aéropostale, Nautica, and Volcom. Adidas announced in August 2021 that it would sell Reebok to ABG for $2.5 billion; the acquisition was finalized Tuesday.

What does Forever 21 stand for? ›

Forever 21 — named because Mr. Chang considered 21 to be “the most enviable age” — was built on the idea of identifying apparel trends, then working with vendors to bring those products to stores quickly at cut-rate prices. From its early days, Mr.

Is Aeropostale fast fashion? ›

Aéropostale is one of the largest American retailers of casual apparel and accessories. It was founded in 1987 in Thousand Oaks, California, and creates fast fashion for young women and men. Aéropostale makes clothing, accessories, shoes, swimwear, beauty, watches, eyewear, fragrances, and jewelry.

Why did Abercrombie fail? ›

Abercrombie & Fitch suffered negative public perception because it was always involved in some form of controversy. The company also failed to identify new trends in teen fashion and spending. Abercrombie & Fitch hired a new CEO in 2017 to oversee an overhaul of its brand.

Do people wear Hollister anymore? ›

In fall 2020, Hollister was ranked second, while Abercrombie was ninth. However, Hollister still provides the bulk of Abercrombie & Fitch Co.'s revenue, although it tends to skew younger than its sister brand.

What did Abercrombie get in trouble for? ›

Following the release of multiple racist t-shirts depicting Asian stereotypes, Asian Americans across the US protested outside Abercrombie stores, demanding that the brand stop selling the graphic tees. In response, the company pulled the products from its shelves and burned them, according to "White Hot."

Top Articles
Latest Posts
Article information

Author: Tuan Roob DDS

Last Updated:

Views: 5613

Rating: 4.1 / 5 (42 voted)

Reviews: 81% of readers found this page helpful

Author information

Name: Tuan Roob DDS

Birthday: 1999-11-20

Address: Suite 592 642 Pfannerstill Island, South Keila, LA 74970-3076

Phone: +9617721773649

Job: Marketing Producer

Hobby: Skydiving, Flag Football, Knitting, Running, Lego building, Hunting, Juggling

Introduction: My name is Tuan Roob DDS, I am a friendly, good, energetic, faithful, fantastic, gentle, enchanting person who loves writing and wants to share my knowledge and understanding with you.