To compete with Zara, H&M and Forever 21, Abercrombie & Fitch will transform its struggling Hollister brand into a fast-fashion retailer. To support this transformation, the retailer will hire a new Hollister president with a fast-fashion background.
The shift will mean lower prices and increasing the U.S.-based supply sources to adjust more quickly to the changing styles. Teens have been gravitating toward the fast-fashion sector, shopping more frequently at lower price points.
The move by Abercrombie comes as teens are turning away from traditional retailers in favor of fashionable items. The retailer once dominated the teen market, but is trying to craft a new profile in wake of the recession, which disrupted the old formula of high-priced items with sexy marketing. Since falling out of touch with its teen customers, Abercrombie's same-store sales declined 10% for fiscal 2013, while Hollister's dropped 14% for the year – the Hollister brand accounts for about half of the company's sales.
The retailer's poor performance has led investor Engaged Capital LLC to push for the resignation of CEO Mike Jeffries. "This board doesn't have the credibility to make the determination that Hollister should be a fast-fashion retailer or that Mike Jeffries should be leading the turnaround," said Engaged Capital chief investment officer Glenn Welling to the Wall Street Journal.
Abercrombie & Fitch Co.owns Abercrombie & Fitch, abercrombie kids and Hollister Co., which has its own intimates brand, Gilly Hicks. When was Abercrombie & Fitch founded?
In total, 21% of U.S. fashion store customers say they like Hollister. However, in actuality, among the 75% of U.S. respondents who know Hollister, 28% of people like the brand.
The low lighting aims to give the shops a casino or VIP club-like feel, bathing their teenage customers in luxury. But parents are less impressed, complaining of bumping into tables, not being able to see colours or prices and - in at least one case - losing a child in the dark.
However, Abercrombie is still considered a fast fashion brand. Fast fashion is often associated with retailers like Shein, H&M, and Zara. And the term represents a sector of the fashion industry that is defined by low-cost, trendy clothing, made unsustainably and often unethically.
Hollister creates carefree styles designed to make all teens feel celebrated and comfortable in their own skin, so they can live in a summer mindset all year long, whatever the season.
Hollister is a popular mall store featuring Cali-inspired, preppy clothing for teenage girls and guys. Hollister describes their style of clothing as “effortlessly cool and totally accessible.” They carry jeans, tops, hoodies, outerwear, & more.
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Introduction: My name is Madonna Wisozk, I am a attractive, healthy, thoughtful, faithful, open, vivacious, zany person who loves writing and wants to share my knowledge and understanding with you.
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