All Abercrombie & Fitch stores carry the same merchandise and sell the products at the same price. Those facts are a given at Abercrombie. Through the toughest sales periods in 2008 and 2009, the company has resisted reducing the prices of its merchandise. Even though sales have taken a hit during the past few quarters, the company stands firm in its belief that the brand image must be maintained.

But even Abercrombie can’t ignore the bottom line. Speaking this week at the Oracle Crosstalk event in Orlando, FL, Kristen Blum, SVP and CIO of Abercrombie & Fitch explained the company’s strategy to reduce costs while moving forward with IT projects and international expansion.

The reversal of fortune of youth apparel brands Aeropostale and Abercrombie & Fitch is serving is unfolding as one of the most visible case studies of what is working with today’s customer. Aero has not only been posting consistent double digit gains during the recent economic downturn, while A&F has seen its sales drop at the same pace, but analysts point out that Aero appears to be gaining share of mind based on online traffic and social presence.

Aeropostale continues to be the bright spot in apparel sales with steady growth. The retailer reported record May sales results, boasting a 30% increase in total net sales. In a recent sales call, the company noted strong customer reaction to its summer collection, and its merchandise margins for the month have increased over 2008.

Focused on the nurturing the needs and wants of its customers, Westport, CT-based Douglas Cosmetics, the largest cosmetics and fragrance retailer in Europe, is familiar with the sweet smell of success. Since its inception over 35 years ago, Douglas has focused on appealing to the customer’s “heart and mind” by delivering an exceptionally high level of face-to-face customer relationship management at the point of purchase. The company trains its salespeople to be experts in every line so they can help customers find exactly what they need.

Editor’s Note: This article is an excerpt from one of RetailWire’s recent online discussions. Each business morning on RetailWire.com, retail industry execs get plugged in to the latest news and issues with key insights from a "BrainTrust" panel of retail industry experts.


In the retail industry, a 100% plus annual employee turnover is not uncommon. And, in these tough economic times, that statistic doesn't tend to be of greatest concern to operators. More likely, they're preoccupied with determining if they can get away with one less person on the floor; cutting back on training; or increasing the commission portion of the compensation.