1. Prepared by: Olga Gnedash, Alexander Petrushin, Brent Hanson
Abercrombie & Fitch Co.
Company analysis
Prepared by: Olga Gnedash, Alexander Petrushin, Brent Hanson

2. Agenda Company Overview Business Description History
Industry and competitors
SWOT analysis
Unique Sales strategy
Recommendations and Conclusion

3. 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

4. What Abercrombie and Fitch brands are you familiar with?

5. Abercrombie Established July 1998 7-14-year-old age group
170 stores in US
“Classic cool” theme
Logo Moose

6. Hollister Co. Established July 2000 14-18-year-old schoolers
455 stores in US and Canada
Theme “SoCal”
Logo Seagull

7. Abercrombie & Fitch Established June 1892
Targets year-old age group
357 stores
Theme “Casual Luxury”
Logo Moose

8. The RUEHL Established September 2004 Targets 22-35 year adults
Operates 22 stores
Logo French Bulldog

9. Gilly Hicks: Sydney Established January 2008 Operates 5 stores
Targets 18 and up
Logo Koala
Theme Australia

10. 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 456-page 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

11. 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

12. What are Abercrombie and Fitch main competitors?

13. Industry and Competitors
Gap, Inc., The
Target Corporation
Limited Brands
American Eagle Outfitters, Inc.
Benetton Group SpA
Tommy Hilfiger Corporation
Urban Outfitters, Inc.
Wet Seal, Inc, The
Aeropostale, Inc.

14. 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

15. SWOT Analysis Strengths Weaknesses Strong brand portfolio
Strong financial performance
Robust balance sheet
Weaknesses
Low inventory turnover ratio
Limited geographic reach

16. SWOT Analysis Opportunities Threats Expansion in new markets
Investment in infrastructure
Development of new concepts
Increasing online sales
Threats
Counterfeit goods
Increasing rental rates in US
Slowdown in the US economy

17. 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”

18. 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

19. Unique Sales Strategy: Publicity
Positive
18-22-year-olds
Controversy surrounding its ad campaign has added allure and exclusivity
34 consecutive quarters of record sales and earnings
Negative
Parents
Organizations
Legislators
“Playboy for kids”

20. 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

21. Unique Sales Strategy: Web site
Allows to download music, e-post cards
Provide useful information, FAQ
Shop online
Watch Abercrombie TV
Create ANFMail accounts

22. Recommendations and Conclusion
Long-term recommendations
Open a discount clothing store
Invest in overseas expansion (Europe, Japan)
Short-term recommendations
Sponsor college events
Strengthen rebellion and controversy image
Emphasize on online shopping
Review the choice of magazines where A&F places ads

23. Thank You For Attention