Retail & Leisure International

FEATURES - CURRENT FEATURES - MAY 2010 - ABERCROMBIE & FITCH

Headed by Chairman and CEO Michael S Jeffries, upscale American fashion retail brand Abercrombie & Fitch focuses on casual wear and accessories for a target consumer ages of 18-22. With over 300 locations in the US, the brand has successfully embarked upon international expansion throughout various world markets. The company also operates three off-shoot brands: abercrombie kids, Hollister Co, and Gilly Hicks (targeting consumers of age 7 and up). The company currently operates 341 Abercrombie & Fitch, 205 abercrombie kids, 507 Hollister Co, and 16 Gilly Hicks stores in the US, whilst internationally it operates six Abercrombie & Fitch, four abercrombie kids, and 18 Hollister Co stores in Canada, the UK, Germany, Italy and Japan. All international stores are owner-operated. The company recently opened an Abercrombie & Fitch and abercrombie kids Flagship store in Milan in October 2009, and an Abercrombie & Fitch Flagship store in Tokyo in December 2009. The company also has plans to open a new Hollister Co Flagship store in New York City in November of this year, and new Abercrombie & Fitch Flagship stores in Copenhagen and Fukuoka (November and December 2010 respectively).

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In addition, the retailer has recently opened new Hollister mall-based stores in Germany, Italy, and the UK. For the balance of 2010, it plans on opening new Hollister mall-based stores in Canada, Germany, Italy, and the UK. RLI asked Eric Cerny, Manager, Investor Relations if there was any one store that the brand considered to be its ‘flagship’. “The Abercrombie and Fitch 5th Avenue store was our first Flagship store, and it is this store that embodies the spirit and inspiration for all of our Flagship stores around the world,” he says.

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And what about his longer-term plans, does the company set itself any targets for new openings in particular territories? “We are evaluating locations where there is a strong demand for the Abercrombie and Fitch brand,” says Cerny. “We are excited to bring stores to these fan-bases around the world, where they can go to experience the brand firsthand. "The Abercrombie and Fitch brand’s expansion is focused purely on the Flagship experience, while the strategy behind expanding Hollister is built upon finding brand-right mall-based locations".

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The ideal location for an Abercrombie & Fitch Flagship is a standalone store in a prestigious shopping district, he says – the perfect environment for a true destination store. As far as new territories are concerned, the company is taking the Abercrombie and Fitch and Hollister Co brands into new international markets where there is evidence of strong demand, he says. “We are excited to give our international customers their own stores in which they can go and experience the brand firsthand,” explains Cerny. “We recently announced that we anticipate the opening of 30 international mall-based Hollister stores in 2010 and expect that this will include two new countries.”

The company will also be opening a new Abercrombie and Fitch Flagship store in Paris in 2011. “It is very early in our international expansion but we are exploring many new locations around the world,” says Cerny.

For the full article please see the RLI May 2010 issue