Performance, Abercrombie & Fitch, global interconnectdness
Over the years, the retail industry has seen remarkable changes arising from the need to withstand the pace of the dynamic customer preferences, tastes and awareness in the wake of global interconnectdness. A definite revelation of the trend is that of the success story of Abercrombie & Fitch retailing enterprise, grounded on visionary principles while prioritizing a custom far broader than earning a living from maximizing revenues. Founded in 1892 by David T. Abercrombie and Ezra H. Fitch, by then was a small store geared toward hunters and the outdoors, but after a experiencing a split amongst its founders emerging from many long and violent arguments amongst themselves in 1907, Fitch retained the operations to the present lifestyle branding enterprise (Abercrombie & Fitch Company, 2007).
On the contrary, the retailing path of the company's flagship has had to deal with the worst bankrupt scares in the ensuing fiscal years' operations arising from the risky and volatile nature of retailing investments. The commitment to clientele's in-store experience reinforced through products remodelling and design is the primary vehicle for sustaining emotional connection with the present brand-spirit success and positioning.
[...] A reprieve for the company to reverse the declining trend lies in banking on the right management and diversifying the products rather than focusing on the cool looks as publicly ABERCROMBIE & FITCH claimed by Jefferies. Similarly, with the domestic market becoming overly saturated and instigating stiff competition, the company should reflect on its expansion policies in the unpenetrated markets to diversify operations. For instance, opening flagship locations in Seoul and Shanghai and an approximated 20 international Hollister stores throughout the year 19 alongside 40-50 in the U.S will ensure its geographical presence within the immediate clientele and subsequently translate to sales (Wilson, 2013). [...]
[...] Similarly, GAP has incorporated a stronger brand strategy in the market segments to expand their sales. This translates to higher comparable store growth where despite registering a negative growth since 2008 to 2011, the company has ignited a sharp increase in the 2012 to a high of despite the increase in the cost of goods. Following the financial crisis, ANF seems as worst in the international market as it suffers a shocking and against GAP - and in comparable store sales. [...]
[...] Quotations from Mike Jeffries, Controversial CEO of Abercrombie & Fitch Stores. Retrieved July from http://retailindustry.about.com/od/frontlinemanagement/a/AbercrombieFitchMikeJeffries quotes.htm Hunter, C. (2013, March 22). Business Operations. Retrieved July from http://yahoo.brand.edgaronline.com/EFX_dll/EDGARpro.dll?FetchFilingHtmlSection1?SectionID=92027819278-26805&SessionID=CVQaFH0cSYMEm47 ABERCROMBIE & FITCH 23 Jarvis, R. (2013, May 29). Abercrombie & Fitch Unapologetic for Catering to Thin Clientele. Retrieved July from http://chainstoreage.com/article/abercrombie-fitch-reportsnet-loss Jefferies, M. S. (2009, January). [...]
[...] As its market operations expanded reaching record sales by the end of the 19th century, ABERCROMBIE & FITCH Abercrombie & Fitch decided to broaden its customer base by opening a children's and preteen 5 store, named Abercrombie. Additionally, the enterprise has maintained its word of connecting to the client preferences through its brands relaid when entering the 21st century, such as the lifestyle brand under the Hollister Company. In spite of riding in the present path of success, the legend approach to sexually charged advertising has generated several incidences of controversies amongst the conservatives. [...]
[...] Consequently, operations are tailored to generate sex appeal and are oiled through racy advertising approaches. It is this technique that is attributable to the current success and the unending controversies from the older generation. But to what extent does the racy advertising, sexuality appeal and store-environment translate into productivity? In January the company by then became a distinguished fastest growing segment operating 1,045 stores, which included 294 Abercrombie & Fitch stores Abercrombie kids' ABERCROMBIE & FITCH 6 stores Hollister stores and 21 Gilly Hicks stores (Thomson Reuters, 2012). [...]
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