Abercrombie’s Sales Slip as Fewer Shoppers Visit Its Stores – WSJ
This story on Abercrombie & Fitch Co. provides yet another confirming datapoint in our Connected Society thematic and the transformation of the American-style mall, which is helping to drive our Content is King thematic as well.
Here are just a couple of excerpts . . .
Executive Chairman Arthur Martinez attributed the decline to “traffic headwinds, particularly in international markets and in our U.S. flagship and tourist stores.”
Same-store sales are expected to remain challenged in the second quarter and improve in the second half of the year.
Abercrombie has been hit hard by changing consumer preferences, declining mall traffic and fierce competition from fast-fashion players . . .
Abercrombie joins a growing list of retailers reporting a weak start to the year. Poor results at department stores and specialty retailers have illustrated consumers’ shift away from brick-and-mortar stores. . .
“The traffic situation is a systemic problem for the industry,” said Mr. Martinez. “Our job is to make the most of the traffic we do get.” He said Abercrombie hasn’t ruled out the option of selling merchandise on Amazon. “As our brands come back to their status and health, we will be looking for additional channels to take our products,” he said.
Source: Abercrombie’s Sales Slip as Fewer Shoppers Visit Its Stores – WSJ
