Abercrombie to continue store redesigning in 2019 to increase sales

Abercrombie to continue store redesigning in 2019 to increase sales

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Abercrombie & Fitch announced on Wednesday, better-than-expected sales forecast largely because of the popularity of its Hollister brand and its expectations from store remodeling to be catching the attention of more young shoppers.

The company along with closure of 40 stores that are not making profits also announced of redesigning its outlets with improved displays and lighting and will offer trendy clothing including sweatshirts and jeans to increase the demand for its Abercrombie brand.

The company will continue to be investing in remodeling of stores with the new format as it is proving to be making more sales, Chief Executive Fran Horowitz said.

Abercrombie & Fitch is among the specialty retailers that are still committed to make in-store investments, she said.

Abercrombie brand is the company’s trademark that offers logo-emblazoned designs, but it has been struggling because of the declining sales as young shoppers prefer cheaper clothes and fast-fashioned brands available online.

In the fourth quarter, same-store sales of company’s Abercrombie brand dropped by 2 percent for taking wrong steps towards the fashion designs of dresses and tops during holiday season, on the other hand same-store sales of its Hollister rose by 6 percent during the same period.

For the dresses and tops of its Abercrombie brand, the company got the wrong silhouette which remained different the shoppers’ desired fitted and oversized styles, said Gabriela Santaniello of retail research firm A line Partners.

Shoppers were concerned and though that style to be continued by the company but it has been corrected as it was error occurred in a single-season, she said.

To increase its sales and specifically target young shoppers, company has been investing in loyalty programs along with use of social media influencers for promotion of its new products which also include brand-specific hashtags of its perfume Fierce.

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Javier Davis produces news on stocks, currencies, bonds, commodities, and real estate. His in-depth research covers most of the major financial markets in America, Europe, and Asia. His research is based on the interconnected relationships among economic and technical factors that drive valuations in the markets, with an emphasis on how to formulate investment strategies. From interest rates to inflation to economic growth and much more, the fundamental concepts presented on this website provide an essential foundation of knowledge for investors to profit in stocks, bonds, commodities, currencies, and real estate markets.

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