Abercrombie and Fitch - External Analysis and Internal Analysis

This implies that American Eagle Outfitters and Urban Outfitters either have higher sales or less inventory kept on their shelves than their competitors from the same industry.

Substitutes: The threat of substitutes is high. The threat of online apparel stores has the potential of destroying the traditional retail industry business model (Bandt, 2000). The ecommerce platforms allow retailers expand their consumer base across national and global markets with lower capital requirements and improved efficiency.

Abercrombie & Fitch is one of the leading clothing companies in the world. They manufacture

American Eagle is defying a slump in teen retail, with sales rising 11% in the most recent quarter. The retailer has been taking several steps to avoid slipping sales, Phil Wahba of Fortune reports. A crucial component of this is avoiding heavily discounted clothing — a trend that's hurting competitors Abercrombie & Fitch and Aeropostale. While shoppers love discounts and good sales, too many of them can be detrimental for retailers. Constant heavy discounts can condition consumers to not want to pay full price.

Recognized for good-looking, all-American, and typically white male and female clothing models, Abercrombie & Fitch has develop into a special type of model of late-a model of asserted employment discrimination (Stephanie 2005). The clothing idol lately cleared up two private class actions and a civil action law suits by the United States Equal Employment Opportunity Commission ("EEOC") by consenting to compensate more than $40 million to African American, Hispanic, and Asian plaintiffs who claimed that Abercrombie discriminated against them (Stephanie 2005); Abercrombie in addition entered into a agreement with the EEOC recognized as a Consent Decree. In Gonzalez, et al. v. Abercrombie, et al., West v. Abercrombie, et al., and EEOC v. Abercrombie & Fitch Stores, Inc., the plaintiffs disputed that they were either restricted to low visibility, back-of-the-store kind jobs or laid off and fired on the basis of their race or ethnicity.

“American Eagle Outfitters sells casual, outdoor-oriented clothes and accessories to men and women. Khakis, denim jeans, shirts, shorts, dresses, wool and cotton sweaters, knit shirts, jackets, shoes, belts, socks, and bags make up American Eagle Outfitters’ line of apparel.” The company has three private label brands which are designed by an in-house team. This team identifies fashion trends and then integrates them into the latest apparel designs. These designs are then manufactured by outside vendors (American Eagle Outfitters, Inc.).

Geographically, Hollister attracts individuals who live in both urban areas (such as myself) but also in suburban areas that have close access to malls or similar large shopping centers. The audience most likely to buy Hollister products is typically popular, good-looking, and seeking to make a fashion statement since the brand prominently features its name on its apparel. In terms of behaviors, Hollister consumers shop together in groups and tend to dress similarly. I differ from these psychographic and behavioral breakdowns because I prefer to purchase clothes alone without any input from friends. I am also less reliant on fashion trends and prefer to define my own style.

Abercrombie & Fitch ANALYSIS REPORT Fundamentals Of Retail Design Group 03 Erik, Herr | I-Chu, Liao | Karan, Shah Kuan-Ling, Tseng | Chen-Hua, Wang ABSTRACT This report intends to analyze the unique brand values, the distinct marketing strategies and the compelling competitive dynamics of Abercrombie & Fitch (A&F), the noted American retailer of casual luxury wear. The purpose of this analysis being to understand the context and motives that drive brand A&F; to draw insights from it‘s past and current strategies and use these to launch a, new sneaker offer‘ within it‘s existing product ensemble. For doing this, we‘ve researched the story of the brand; it‘s original and potential target market, it‘s financial

Threat: Forces shaping the Nordstrom’s strategy is that it is operating in highly competitive environment, where apparel sold by it is not only competing with large organized departmental chains but, also from small independent boutiques in the U.S. As a result competition has become very stiff in retail

Founded in 1977, American Eagle Outfitters (NYSE: AEO) is a retailer that designs and develops fashionable girls’ and boys’ apparel and accessories. The company’s target audience is boys and girls between the ages of 15 and 25 years old. The target audience seeks trendy and fashionable apparel product that meets a high standard of quality at an affordable price point. As of the most recent fiscal year, ended January 30, 2010, American Eagle held 1,103 retail stores in total, operating under the “American Eagle”, “Aerie”, and “Martin+Osa” brand names respectively. In addition to the retail stores,

To begin, one of the largest questions asked about Abercrombie & Fitch would be is marketing adult-style undergarments unethical? Producing and advertising thong-style underwear for 10-16 year olds is definitely unethical to a certain extent. There are many moral principles that

HollisterCo is a beach themed clothing company. It was founded in 1922 by Mike Jeffries where back then it was still not a well-known company until the founder of Abercrombie and Fitch takes over it. It offers a wide range of apparel and accessories for men and women which includes logo tees, graphic shirts, tanks, bottom wear and even sleepwear. It also provides colognes, perfume, gloss products, body care products as well as gift cards. (“Short Title”, 2014). Hollister has 51 outlets in 19 different counties. Hollister also enable buyers from other countries to purchase their products through their online store.

Despite Abercrombie & Fitch’s efforts to win back loyal consumers with their new rebranding initiative, the company continues to experience a decline in annual revenue and dismal growth coupled with a poor return on investment, making it a risky investment option for potential shareholders. According to the company’s annual report, Abercrombie & Fitch saw a decline in revenue from $4,116.90 billion in February 2014 to $3,744.03 billion in 2015 with fourth-quarter revenues falling nearly 14% to $1.12 billion (Abercrombie & Fitch 41). The company contributed its dismal report to a decrease in the number of operational stores at the end of Q4 fiscal 2014, weak consumer demand for both Hollister and Abercrombie & Fitch, slowing growth in

As of Feb 28, 2014, the company had approx. 10,000 employees & 246 retail stores in 20 countries. The company has business in the United States, Canada, Mexico, Brazil, United Kingdom, Ireland, Austria, Belgium, France, Germany, Italy, Netherlands, Spain, Sweden, Switzerland, Israel, Australia, Japan, South Korea, and China. The company also operates an e-commerce website with 12 different localized online stores across the world.

While the company may be seeing the start to its decline, past years are proof that Abercrombie and Fitch have made a good name for themselves. How does the industry operate one might ask? There are many sides to the coin when it comes to determining how this company functions, but let’s start with its