Like many retailers Abercrombie & Fitch Co. suffered dismal November sales results. However, unlike many of their rivals they have made a fundamental decision not to aggressively lower prices -- deciding instead to try and maintain the equity of their brand.
So if they don't match on price, what will be the draw to the customer? Have they built enough equity to survive the downturn? Has their brand experience built enough customer loyalty to keep them coming back? Time will tell.
It will be interesting to see what A&F does as the recession continues. Will they be able to maintain the profitability based on less sales at higher prices or will they succumb to the price war? Stay tuned.
Cheers!
Bill's passion is improving business results by working with leadership teams to change employee behaviours. He does this by equipping leaders with the principles, processes and tools to cultivate an engaged customer-focused culture.
As well, he is a dynamic, results-oriented speaker on the importance of employee engagement and a customer-focused culture, either as a guest speaker or acting as a facilitator of a group discussion/workshop.
For more information please contact (905) 841-3191
Email: bill@billhogg.ca, Web: http://www.billhogg.ca/
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