Company Analysis of Abercrombie & Fitch Co.

There is no other company that is obsessed with the words quality and trend-right merchandising, emotional in-store experience and aspirational brand positioning than Abercrombie & Fitch Co.

Since Abercrombie & Fitch Co. started its operations in the 19th Century, it has slowly transformed itself into one of the more famous specialty retailer and lifestyle brand in the United States. It has a strong appeal to its young and hip customers. It has recently developed new brand concepts and has improved its product line.

As part of its plan to improve its international presence, Abercrombie & Fitch Co. has established stores in Canada and United Kingdom. In 2009, there are plans to establish new stores in Japan, Milan and Copenhagen.

To address the different needs of its customers, Abercrombie & Fitch manages and operates four (4) other brands: abercrombie kids, Hollister Co., Ruehl No. 925 and Gilly Hicks.

In the midst of economic crisis, other companies have started going on promotional sales to drive traffic inside their stores. For Abercrombie & Fitch Co., however, promotional sales are ineffective strategies as it eventually hurts the company’s image in the long run. Instead, ANF believes that it can achieve growth by other means such as by focusing on its international expansion, particularly the European market. ANF expects that it will be able to generate better performance from its proven brands like Hollister and developing concepts such as Ruehl and Gilly Hicks.

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