The retailer stubbornly clings to luxury while everyone else cuts prices.
By Caitlin McDevitt of The Big Money
To the dismay of the Abercrombie & Fitch empire, teenagers whose parents have cut back on their allowances may be coming to a recessionary revelation: Paying $90 for torn jeans isn’t that cool anymore.
While other retailers are responding to the downturn with red-lined price tags and tempting promotions, upscale Abercrombie & Fitch (ANF) isn’t budging on its price points. This scarf, for example, will still cost you $58. The company is fiercely protecting its image as a “premium” brand, and, as a result, it’s getting snubbed big time by its once cultlike, ever-loyal fan base. Abercrombie & Fitch just posted a 34 percent drop in same-store sales from last year—the worst among retailers in March.
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