A&F turns Hollister into a cheaper fast fashion brand

A&F turns Hollister into a cheaper fast fashion brand

Abercrombie & Fitch intends on turning its surf brand Hollister into a fast fashion brand to allow it to better compete with rivals like H&M: the Swedish chain is making huge strides with teenagers, leaving A&F behind.

Lower prices, more collections

The brand’s biggest change will be a price drop and more supplies from the United States, to get newer collections into stores faster. That combination has proven to be an important part of H&M’s success, as people visit the stores more often, even with smaller budgets.

 

To facilitate the switch to fast fashion, Abercrombie is looking for a new Hollister CEO, preferably someone with fast fashion experience.

 

Store closures

Hollister had a 2013 turnover of 2.1 billion dollars (1.5 billion euro), which is half of what A&F sells in total, but experienced a like-for-like turnover drop of 14 % in its last fiscal year. Because of that lower turnover, Abercrombie expects to close some 60 to 70 stores in the United States, where most of the Hollister stores are located.

 

There has been a bit of a struggle in the highest echelons of the company structure because of A&F’s and Hollister’s performance as well, as investment company Engaged Capital is seeking changes in the board - especially CEO Mike Jeffries’ resignation as one of the measures. Jeffries has already been replaced as chairman of the board of directors, but still hangs onto his position of CEO.

Questions or comments? Please feel free to contact the editors


Aldi Nord and Aldi Süd collaborate for animal welfare

18/01/2018

Aldi Nord and Aldi Süd will join forces for a unique collaboration: they will launch their own animal welfare quality mark. “Fair & Gut” (Fair and Good) will launch in Germany for poultry products, but steadily expand.

Rewe uses chocolate pudding to see how little sugar is acceptable

18/01/2018

German supermarket chain Rewe has asked its customers how little sugar they can bear. It aims to lower its private label’s sugar levels, but the consumer will decide by how much.

Lidl dials down its American ambitions

18/01/2018

Lidl had hoped to have about 100 stores in the United States by the summer, but will be forced to adjust its first-year goals. It currently has 49 stores in the United States.

Carrefour looks back on difficult year

17/01/2018

Despite an fourth quarter improvement, Carrefour experienced a very difficult year. There was no growth in Belgium either and it now all depends on CEO Bompard’s new guidelines, which will be revealed next week.

British supermarket chain Iceland gives plastic the boot

17/01/2018

British frozen food chain Iceland will be the first supermarket chain to cut all plastic packages from its private labels. By 2023, each of its 1,400 private label products will have more sustainable packaging, like cardboard and paper, alternatives to plastic.

AB InBev sells two German beers

17/01/2018

AB InBev has sold German beer brands Diebels and Hasseröder, alongside its breweries, to investment fund CKCF. The new owner wants to invest more in the two beer brands.

Back to top