Abercrombie & Fitch Co. announced that it will be closing 60 stores in the U.S. after reporting a wider loss for its second quarter. This represents about an 8 percent closure of its store count in the domestic market. Abercrombie reported that sales have been hurt by a decline of tourists to its flagship cities.
Total Retail’s Take: Abercrombie & Fitch has struggled to adjust as it target customers have increasingly shifted to mobile commerce and fast fashion. Now, the brand is going through a major makeover, trading in its “sexy” image for a more wholesome look. However, it might be too little, too late. In addition to declining sales, Abercrombie has recently had to weather some PR crises as well. Former CEO Mike Jeffries said he only wants thin, attractive women shopping with the retailer, and there were allegations of discriminatory hiring practices based on looks. The “cool” teenagers that once shopped at Abercrombie are now in their 20s and less inclined to purchase from the brand.