Abercrombie & Fitch Co. has decided to ditch the the logo from their clothes after reporting their shares fell as much as 8.5 percent on Thursday, the tenth straight decline in quarterly same-stores sales.
The logo is what made the clothes among the most popular with teenagers since the company's inception in 1982, but recent trends suggest that young demographics are now more inclined to purchase cheaper, trendier clothes provided by competitors such as H&M, Forever 21 and Zara.
Decline in sales were likely made worse when Cheif Executive Mike Jeffries created a media headache for the company by implying that Abercrombie's clothing was meant to be worn by "cool" and "attractive" teenagers, not fat ones. Unsurprisingly, Jeffries full, original interview conducted with "Business Insider" is no longer available online
Since Jeffries' harmful comments, the company has created more merchandise to include larger sizes for female customers, cut the prices of their clothes, and gone the extra mile to design more fashionable styles; however, the damage from Jeffries' words had already been done and the decline had already been a steady pattern prior to his audible gaffe.
Some analysts believe the poor job market has impacted Abercrombie's sales more than other factors. A pair of women's skinny jeans from Abercrombie cost around $75 whereas the same item at other retailers can be purchased for less than half the price. Teens recognize no discernible difference in the quality of the clothing.
Removing the logo allows the Abercrombie brand to blend in with the rest of the crowd, but the removal of the logo alone is not expected to greatly influence sales. An additional move or two is necessary for Abercrombie to regain its' prior status as the cool thing to wear among its core demographic. The company is unlikely to slash prices further because part of Abercrombie's appeal has been that not everyone could purchase the clothes.
Jeffries' comments were indicative of the company's culture: they want certain kinds of people purchasing their products, but like every business, adjustments have to be made to stay on top as tastes change and new competitors enter the market. A logo change alone simply makes them blend in with everyone else. That does represent a change for Abercrombie, but not one that demonstrates that its brand is a better alternative than competitors.
