captainccs

What Happened to Gap Stores?

Old age and bloat are unrelenting. GAP is yesterday's story and has been for quite some time. Styles change and old stores don't know how to keep up. Once markets are saturated management has to come up with gimmicks to promote growth which, more often than not, do not work. GAP had its day in the sun. Time to make room for upstarts like Urban Outfitters, Buckle, American Apparel and True Religion. Time does not stand still.

Long APP, TRLG & URBN

Teen Retail: Sell in May, and Go Far, Far Away

Aeropostale targets teens 14 to 17, most of who are below employment age. A recent discussion by management said the most of the kids go to the store with mom or dad. I don't think these kids are paying for their clothes, mom and dad are, and Aeropostale just had a rip-roaring quarter probably at the expense of Abercrombie & Fitch.

Lumping retail into single big pot is a mistake, even lumping teen retail into a single pot is a mistake. In retail it pays to classify by low cost (Ross Stores), in (Aeropostale) and out (Abercrombie & Fitch).

Why Is Abercrombie & Fitch Giving in on Pricing?

I agree with 2houndz's comment but it goes further. If the buyer is frustrated by the price and goes shopping elsewhere, and if he finds something new and exciting at the competition, he is a lost shopper for Abercrombie.

Acquiring a new customer is several times more expensive than selling to an old one.

In other words, Abercrombie shot itself in the foot with the brand protection policy of keeping prices high in the recession.