Abercrombie & Fitch Co. Company analysis
Agenda
Company Overview Business Description History Industry and competitors Unique Sales strategy
Company Overview
Specialty retailer that sales casual apparel Operates under 5 brands: Abercrombie & Fitch, AbercrombieKids, Hollister and RUEHL and Gilly Hicks: Sydney brands. The company operates in the US, Canada, UK. Operates 1039 stores worldwide (February 2008) 80,100 employees
What
Abercrombie and Fitch brands are you familiar with?
Abercrombie
Established July 1998 7-14-year-old age group 170 stores in US “Classic cool” theme Logo Moose
Hollister Co.
Established July 2000 14-18-year-old schoolers 455 stores in US and Canada Theme “SoCal” Logo Seagull
Abercrombie & Fitch
Established June 1892 Targets 18-22 year-old age group 357 stores Theme “Casual Luxury” Logo Moose
The RUEHL
Established September 2004 Targets 22-35 year adults Operates 22 stores Logo French Bulldog
Gilly Hicks: Sydney
Established January 2008 Operates 5 stores Targets 18 and up Logo Koala Theme Australia
History
David T. Abercrombie established Abercrombie Co. on June 1892 In 1904 wealthy Ezra Fitch became a co-owner In 1909 issued and mailed 50,000 copies of 456page catalog In 1917 A&F became the largest retailer in NYC that sold sportswear In 2006 A&F opened its first store in Canada, In 2007 first store in UK
Industry and Competitors
Retail Industry (Special Lines) 40,000 companies operate 90,000 stores Summarized annual revenue $130 billion Dominance of large companies Slowdown in spending on clothing Labor-intensive industry, high demand for qualified and skilled sales reps Two main sales seasons- fall (main for A&F) and spring
What
are Abercrombie and Fitch main competitors?
Industry and Competitors
Gap, Inc., The Target Corporation Gap, Inc., The Limited Brands American Eagle Outfitters, Inc. Benetton Group SpA
Tommy Hilfiger Corporation Urban Outfitters, Inc. Wet Seal, Inc, The Aeropostale, Inc.
Competition Abercrombie & Fitch
American Eagle The Gap
Established
1892
1904
1969
Revenue (billion USD)
6.91
2.8
16
Number of stores
1039
697
3139
Employees
80,100
20,600
150,000
Scope of operation
US, Canada, UK
US
More than 19 countries
Unique Sales Strategy: IMC
High integration of Marketing efforts Recruits high energy “brand reps” largely from college campuses who dress in A&F Issues subscription catalog – A&F Quarterly (350,000 Americans has subscribed) Issues “magalogs”
Unique Sales Strategy
Emphasis on high level of service, quality, brand image
Targets Generation Y
Positioning strategy involves the use of overt sexuality advertising appeal
http://www.youtube.com/watch?v=9dqEcKcadUE&NR=1
Unique Sales Strategy: Store Layout
comfortable armchairs designed Large photos on the walls extremely loud, energizing trance and dance songs dimmed light unique A&F’s scent in the store
Unique Sales Strategy: Web site
Allows to download music, e-post cards Provide useful information, FAQ Shop online Watch Abercrombie TV Create ANFMail accounts