11/4/11

Abercrombie to ‘Jersey Shore’: Ditch our brand

  ”We are deeply concerned that Mr. Sorrentino’s association with our brand could cause significant damage to our image. We understand that the show is for entertainment purposes, but believe this association is contrary to the aspirational nature of our brand, and may be distressing to many of our fans,” an Abercrombie & Fitch spokesperson said in a statement. “We have also extended this offer to other members of the cast, and are urgently waiting a response.”

  The reality show, currently in its fourth season, features hard-partying and hookups in locations ranging from the show’s origin, the Jersey Shore to the current season in Florence, Italy.

  The castmates have coined terms like “grenade”– to refer to an unattractive woman — and has come under fire for their liberal usage of words like “Guido” and “Guidette,” which many have argued as adhering to Italian-American stereotypes.

  Abercrombie FR is also no stranger to controversy. The all-American retailer has come under fire in the past for a range of topics ranging from negative stereotyping to sexually explicit material and employment practices.

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  Abercrombie is having other problems. “They were the quintessential American prep brand, but the world changed on them,” says Edward Yruma, an equity research analyst at KeyBanc Capital Markets. “We’re living in the Gossip Girl era, where we’re seeing some funkier fashions.” Abercrombie’s classic look went out of style, and the company is just starting to sell dresses, which have performed well. “I’ve noticed that my kids aren’t open to anything Abercrombie these days,” says one mother of two teenage girls.

  After releasing second-quarter earnings on Aug. 14, Abercrombie CEO Mike Jeffries admitted that the company missed some spring fashion trends. He said he plans to cut prices more aggressively. (The company did not respond to an interview request.) He might also want to change the Abercrombie vibe, which seems pretty tone-deaf to the times. At the New York City Abercrombie & Fitch store, whose neighbors include Prada and Gucci, a shirtless male model greets shoppers at the front and happily snaps pictures with the gawkers. Sales associates dance to hip-hop music in the aisles. There’s not one “For Sale” sign in the whole four-story place. A pair of men’s ripped jeans go for $90; women’s jeans are $80; a hooded sweatshirt with the Abercrombie logo is $60.

  Meanwhile, at the New York City Aéropostale, whose neighbors include J.C. Penney, no one is shirtless but everything is on sale. No half-nude model greets you at the front door, but a guy barking “Buy one pair of women’s jeans, get another free” does. Sales associates don’t dance; they tell you deals. Ripped jeans are $30; women’s jeans sell for $49.50 (plus the freebie pair); the Aéropostale hoodie is $15, or a quarter of Abercrombie’s price.

  Think it’s a coincidence that while Abercrombie’s second-quarter profits fell 134%, Aéropostale’s are up 83%?

  When and if the economy heats up again, perhaps shoppers will return to the so-called aspirational brands like Abercrombie. But don’t bet on it. “Retailers don’t realize that consumers are spending less and doing O.K. with it,” says Beemer. According to Beemer’s research, only 40% of men and 20% of women say they’ll spend at high-end apparel stores again. “Abercrombie keeps working to protect their brand,” says Beemer. “But when you keep seeing 30% sales declines, you’re going to protect your brand into oblivion.”

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