Fast Fashion Train
Abercrombie & Fitch Co. is planning to rebrand its Hollister concept as a fast fashion retailer. Changes would include lowering the prices of merchandise and creating a U.S.-based supply chain. Company executives are seeking a new Brand President for Hollister with fast fashion experience. The new brand roll-out for the mall-based stores is not expected to take long.
Fast fashion retailers offer the latest apparel styles. This requires a retailer to have a quick supply chain turnaround and offer low pricing to offset the frequency of purchases. H & M is a top fast fashion retailer that has continued to expand in the past decade with almost 300 mall-based stores in the country. Top teen retailers offering the same fast fashion concept, such as Forever 21 and Rue 21, have also shown growth. These retailers operate 550 and 1,000 mall-based stores respectively.
Abercrombie & Fitch Co. recently reported its fourth straight quarter of falling sales. Over this time the company snubbed the idea of discounting its merchandise, and maintained its customers would pay a higher price for the higher perceived quality of the brand. After seeing this may not be true, the retailer will join the fast fashion train.
In related news the company announced plans to shift its marketing and merchandising focus for its Abercrombie stores from teens to college students. The retailer hopes this, along with rebranding the Hollister brand to fast fashion, will allow Abercrombie & Fitch Co. to be perceived as its premium brand.