Abercrombie And Fitch
Abercrombie & Fitch Reluctantly Reducing Prices
What: Abercrombie & Fitch, like any retailer that sells overpriced merchandise, is hurting right now. However, the chain won’t start slashing prices left and right - instead of putting every other clothing item on sale, A&F is going to slowly and subtly lower prices.
What They Say:
Looking ahead to the spring, the company has cut better deals with manufacturers that will allow it to charge lower prices at stores without taking a big hit to margins.
What We Say: Right after they shut down Ruehl, too! We’re not crazy about A&F to begin with - it’s a teenager’s world over there - but it’s easy enough to dip into the store randomly. And now that prices may start to go down, we’ve got a new reason to go. Wonder if other retailers are about to drop prices as well…
Abercrombie & Fitch Get Real with Ruehl
What: Ruehl No.925, or just plain “Ruehl,” was meant to pick up where Abercrombie & Fitch (its creator) left off. Targeted to the 22 to 35-year-old post-college, elitest crowd, the chain just couldn’t cut it in this recession. Not many 20 somethings are shelling out $100 on a pair of jeans right now. All 29 stores, located in 15 states (primarily on the East Coast), are set shut down by January 2010.
What They Say:
Wall Street criticized Abercrombie & Fitch for taking so long to close Ruehl. Abercrombie took a $51 million impairment charge related to Ruehl in the first quarter and will have to charge off an additional $65 million over the rest of the year. Same-store sales at Ruehl fell 33 percent in May alone.
What We Say: If you live near a Ruehl store, don’t rush there for a mini shopping marathon, hoping to cash in on all kinds of pre-closing deals. Find out when it’s scheduled to shut down and then check in a few weeks and even days before. We do, however, expect some great savings around the corner - Ruehl already started slashing prices before the bad news.
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