Abercrombie and Fitch Case Study

1443 Words Apr 17th, 2012 6 Pages
Abercrombie and Fitch Case Analysis
MGT625
April 11, 2012
Elizabeth Payne

Abstract Abercrombie and Fitch (A&F) is a typical mall front store. They have been in the business for a century and are not going anywhere. A&F sees their fair share of mock items and lawsuits. However, through it all, A&F has made it to be successful, overcome threats, and open similar chains to target a wider range age market.

Introduction Abercrombie & Fitch was founded in 1892 as a unique clothing store. Over the century in business they have made a distinct target for young adults. The fashion giant specializes in apparel for ages 18 through 22. “The 118-year-old retailer has been acknowledged for operating a top-notch internal
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16). That is no small feat for any company. A&F has also branched out into branding sub-chain stores such as Hollister and Abercrombie. These stores reach the younger audience while still maintaining an image that is more suitable for that audience. Those stores have also flourished in their own environment to gain consumer recognition and loyalty. A&F is able to create successful sub-brand operations that tap into other target markets.
Greatest Weaknesses The greatest weaknesses that A&F has is that the economic downturn has forced consumers to tone down their spending habits and give up non-necessary items like brand name clothing. This has been especially hard on online sales for A&F. The company’s sales for online items have been down and the profit margin is non-existent. This makes it hard to keep the online service available when it does not offer the company with any profit. The lawsuits A&F face are not only because of suggestive advertising but because some view them as discriminatory against minorities. Often A&F ads have a picture of white young adults. This is seen as that is A&F only target; white young adults. In 2005, Abercrombie paid $40 million to a class of African-Americans, Asian Americans, Latinos and women to settle another workplace discrimination lawsuit,” (Casabona, 2010, para. 7). The company has been ridiculed and mocked for their practice, although that does not

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