New Hollister formula stimulates Abercrombie & Fitch

Hollister‘s new formula has to help put parent company Abercrombie & Fitch‘s results in the right direction. It has already been implemented in several stores, but its effect on turnover should increase soon.

More open store space

The latest quarterly results show that Hollister’s like-for-like turnover grew 4 % thanks to the new store formula, which is why Abercrombie & Fitch expects like-for-like turnover to increase more than 10 % when an increased amount of stores use the same store formula. The youth brand has more than 400 stores in the United States alone and another 140 abroad.

To get customers back into the store, Hollister radically transformed its store forrmula. At the front, video screens have to entice the customer, while the porch look has vanished. Hollister also cut back on the amounts of its own perfumes it sprayed it in the stores. The biggest changes can be found on the store floor itself, where the spaces have been increased, which in turn should give employees a better view of the customers. “Before, someone could be in one of the rooms [and] we wouldn’t even seem them … in the store“, president and Chief Merchandising Officer Fran Horowitz told Business Insider.

There is also a decreased focus on discounted items. Those are still present, as it draws in a lot of younger customers, but by shifting attention to the more expensive items, Hollister hopes those customers will return with their parents and buy something more expensive.