Teen retailer Abercrombie & Fitch has gone out of style. No matter how much it believed kids would never, ever abandon its stores filled with sexy clothes and half naked men, they did — and in record numbers.
It tried to ride out the recession maintaining its high prices, an arrogant mindset that turned off customers. Most other marketers were listening to customers and acting accordingly, some by lowering prices, others by adding value, offering money- saving options and suggestions or reworking messaging to relay compassion to worried, cash-strapped customers.
But Abercrombie? It crash-landed and is now trying to play catch-up by lowering prices and introducing fashion trends it missed, like dresses. The company reported a second-quarter loss of $26.7 million, its third consecutive quarter showing double-digit sales declines. Employees are getting pink slips, and pricey sister-chain Ruehl is shutting stores.
Abercrombie’s recent financial report also suggested it has cut its marketing budget — another bad move at a time when it should be letting its customers know it has finally come to its senses.
Commentary from the BigFatMarketingBlog.com
Network
