Abercrombie & Fitch yesterday reported a 19% decline in sales for the three months to 31st January. Profit, although they are still making one, is considerably down. And yet….
And yet they remain totally wieded to their no discount strategy. A premium pricer before the slump began they remain true to their values.
Their strategy rests heavily on there being a core group of loyal consumers who will continue to shop at A&F whatever the economic climate AND that recovery is around the corner.
Two big ifs !
But is it any riskier than the ‘dive to the bottom’ panic exhibited by their competitors ?
And what’s better for the world in general – one sweatshirt that costs $75 and lasts for years, or 10 that cost $7.50 and don’t survive the first laundering.
Will this economic environment teach us that less is more and quality will always count for something ?
A&F seem to think so and who am I to argue !