Abercrombie & Fitch to Close 3 Flagship Stores Amid Weak Sales
Abercrombie & Fitch announced Wednesday plans to close three more flagship stores, reports CNBC. The announcement comes as the apparel retailer reported lower-than-expected first-quarter sales and a drop in share value. The locations set to close include a Hollister store in the SoHo neighborhood of New York City, an Abercrombie store in Fukuoka, Japan, both closing this year, and an Abercrombie store in Milan, Italy, closing in early 2020. The retailer has closed a total of five flagship stores since 2017.
Total Retail's Take: These latest flagship store closures align with Abercrombie & Fitch's strategy to focus on smaller stores, "pivoting away from large-format stores and continuing to transition to smaller, more omnichannel-focused spaces," the brand said in a company press release. Fran Horowitz, chief executive officer, said Abercrombie & Fitch is "focused on [its] transformative initiatives, with global store network optimization a key priority" in 2019 and beyond. The brand's closure of large-format store locations will further reduce costs, and figures to improve the bottom line. While the company didn't meet expected same-store sales growth, overall sales grew to $734 million from $730.9 million a year ago.