In response to Avani Karadkhedkar‘s question “Can A&F survive this situation which majorly threatens their brand?” concerning CEO Mike Jeffries’ comment on A&F clothing being only suitable for cool kids. The answer to the question posed is no.
The prestige from A&F apparel has worn off in recent years, and as consumer trend move away from preppy logo advertising, A&F falls behind and becomes the company that couldn’t keep up. While A&F’s competitors are already selling plus sized clothing, A&F has held off entering the plus sized market for years. However, in a move that has perhaps come years too late as indicated by their falling sells, A&F has announced that upcoming changes include the extension of clothing sizes and the addition of more designs.
Their attempt to regain customers by selling plus sized clothing shows that A&F is trying to reposition the brand, but brand image aside, price is still a factor that will keep customers at bay. Especially in a market where spending power has weakened amongst A&F’s target market: teens and young adults. Price should be another area A&F considers making changes to or sales will continue to drop.
http://online.wsj.com/news/articles/SB10001424052702303936904579180281026324364
http://nypost.com/2013/11/06/abercrombie-to-offer-larger-sizes-after-fat-controversy/
Image from: http://www.neontommy.com/sites/default/files/users/user1166/Abercrombie%20and%20Fitch%20Ad.jpg