Mike Jeffries is either one of the most brilliant retail leaders of our time or one of the most deluded. It depends on who you talk to - Jeffries, or anybody else. In August, for the 17th month in a row, Abercrombie & Fitch posted a monthly same store sales loss. For the 14th month in a row that loss was in the double digits. For the (estimated) 6,739th time Jeffries has defended the value of the Abercrombie brand by reminding us all that it is "aspirational."
When announcing recently that the company will finally budge off its no-discounts stance, it seemed clear that Jeffries was not making the move willingly or wholeheartedly. After finally admitting that cost cuts were necessary to drive traffic back into the stores, Jeffries had to add, "The driving force behind our [higher] pricing has been fashion, quality and the aspirational nature of customers."
We get it. You think you've been protecting the enormous value of your superior aspirational brand.
Instead of tellng us that over and over again, I wish Jeffries would answer one question. Where exactly is the value of the Abercrombie & Fitch brand hiding?
Should we look for the value of the Abercrombie brand in its sales figures? The company's August, 2009 net sales were $313.9 million. That figure lands somewhere between its August, 2005 net sales of $287.4 million and its August, 2006 sales of $351.3 million. But it took the company nearly 250 more stores this year just to generate those greatly digressed sales numbers. If the value of the brand is reflected in its sales, then Abercrombie is giving new meaning to the "rollback" brand identity.
Should we look for the value of the Abercrombie brand in its stock? The company's stock prices this year have been some of the lowest of the decade, most closely mirroring the value that stockholders thought the company had back in 2000. If the value of the Abercrombie brand is in its shares, then it may need to go back to the 20th century to reclaim it.
Should we look for the value of the Abercrombie brand in its reputation? The company has been boycotted by Focus on the Family, Concerned Women for America, Women and Girls Foundation, National Coalition for the Protection of Children & Families, Asian-Americans, high school students, college students, parents, and more internet groups than could be listed in one blog.
Abercrombie & Fitch has also been sued for racial discrimination, harassment, and reportedly running sweat shops. It has angered and offended African-Americans, Latinos, Asians, Muslims, Christians, gymnasts, people with disabilities, West Virginians, an Ohio children's hospital, and even its own shareholders.
The brand is closely associated with sexual exploitation, racial discrimination, offensive t-shirts, shirtless store greeters, soft-porn catalogues, high prices, and low value. It is sometimes referred to as Abercostly & Fitch, and Abercrombie & Glitch.
The Abercrombie & Fitch brand most definitely has a reputation. It's generally not considered to be a positive reputation, but surprisingly, there may be brand value in its aggressively antagonistic image. Its callous condescending cool may actually match the values of its core customers. Bullies from the upper social strata who enjoy domination by intimidation come to mind. Even "mean girls" (and guys) have to wear clothes. And they're certainly not going to buy them from Target.
Most experts agree that the value of a brand is intangible, measured primarily in how it makes customers feel when they associate themselves with it. If this is true, then we can be fairly certain where the value of the Abercrombie & Fitch brand can definitely be found - in the mind of Mike Jeffries.
The 65 year-old bronzed, buff, and bleached CEO has never made it a secret that he wants to cater exclusively to the cool clique in every high school. Jeffries, then, because of his rank in the organization, gets to be the King of Cool.
So, when Jeffries stubbornly stuck to his we're-too-cool-for-discounts policy, was he staunchly protecting the status of the Abercrombie brand, or his own? Is it really that Jeffries is so afraid that people won't be excited about the brand any more, or that people won't be excited about him?
Jeffries might have been too busy counting his $72 million CEO compensation package last year to notice that nobody's particularly excited about either him or his brand these days. Americans aren't doing all that much aspiring, sex doesn't always sell, and conspicuous consumption isn't cool right now. In case you hadn't noticed.
So after spending a critical year stubbornly trying to prove that his brand was so superior to the rest of the U.S. retail industry that it wouldn't be subject to anything as mundane as global recession, Jeffries has become one of the plebian discounters. Welcome to the lame table in the cafeteria.
Abercrombie can return to protecting the fabricated value of its aspirational brand at any time it chooses, as long as it is willing to accept 2000 stock prices, 2005 sales figures, and 30% fewer subjects in their kingdom of exclusivity. Apparently that's the going price for cool these days.
Much like the teen customers who were abandoned in the past year, though, Jeffries may find that even though he's willing to pay the price that will keep him feeling superior, he can't actually afford it any more.
Jeffries said in an interview in 2006, "Are we exclusionary? Absolutely. Those companies that are in trouble are trying to target everybody: Young, old, fat, skinny. But then you become totally vanilla. You don't alienate anybody, but you don't excite anybody either."
It's easy to be cocky when you're coming off a good year. But now that Abercrombie is one of "those companies that are in trouble," there's one more question that I wish Mike Jeffries would answer.
How do you like the taste of vanilla?
Comments
Barbara, You are spot on! Great writing.
Barbara,
If Mike Jeffries is really worried about keeping his brand image of being worth the rediculously high prices, then maybe he should be focusing on those stores that are located in the regions where unemployment rates aren’t sky high and where people can actually afford to blow money on brand names. I don’t see how opening 250 new locations helps when what they should be doing is closing unprofitable locations and aiming more towards online buyers through more successful companies (Amazon.com) and keeping high sales locations open.
Today my daughter and I had the unfortunate experience of being snubbed and treated like a worn out shoe–it was demanded that I egress her dressing room, despite sitting cross legged on the floor only to determine what pant size she wore in order to purchase many more. Arriving at 7:30pm CTS at the Schaumburg, IL store, I dressed in Lucky Brand embroidered jeans with a silk blouse and Prada sandals and my daughter dressed head to toe in A&F clothes, notwithstanding her latest UGGs. The 6 foot Asian young woman was repeatedly banged on the dressing room door with her fist until I retreated to the front of the store, weighing my options. I proclaimed my little one should get a good look around, because after shopping for all her friend’s birthdays, Christmas for many, and general gifts for all occassions, the uncultured, course employee was the last straw. Just hearing the clatter of the dressing room doors slam as she hurried shoppers into these tiny closets still makes me wonder if she was not having a bad day and should have excused herself earlier. I made a tiny purchase, which will be my last. Many stores now carry sizes 00, 0, and 2, and reading about the the law suit, and being confronted with a store of Asian women makes me wonder which movie experience Mr. Jeffries thinks I want to buy into. Frankly, I would not see his movie for free. Our future plans are to leave the box office reciting our money was well spent and how much we are looking forward to our next experience there.
ive worked as a sales associate for abercrombie and fitch for about two years and i have to say this is brilliant. jeffries is a pig. “you dont alienate anybody”!? are you freakin kidding me!? what is this high school? and i see him alienate people everytime i work, it kills me to see some of the young girls come in who dont fit into the largest size which to be honest is rather small. its sickening that jeffries sits on his throne and is happy to say “exclusionary” when some young girl is upset because shes a little to big to wear hollister or abercrombie. and ive heard from here and other sites too that jeffries is one of the highest paid ceo’s in america, funny because ive worked at my hollister for two years and have never been given a raise and probably never will be given one. “were to cool for discounts”? thats just plain silly im a 19 yr old guy and even i know you need promotions and such to bring in business. i hope this poor excuse for a boss likes the taste of vanilla
It’s as simple as this: you don’t like it, don’t shop there, don’t go in there, don’t work there. Easy. Problem solved. Really, stop whining. And it’s obvious that ANF is immensely popular and will continue to be that way regardless of how many people bitch about the brand. Articles and blogs are useless, the multi-BILLION dollar company will not fold because of some whiny people. It’s the brand that it is for a reason, and that’s the way it will always be.
Right on charlotte!!!! People need to get over there whiny disgruntled selfs! Eww go shop at kmart or something.
I shop at Abercrombie about every other week and the sales staff is idiotic and retarded and rude, BUT that doesn’t stop me from buying what i like. Mike Jeffries could be killing puppies and raping his daughter but as long as he keeps those cool clothes coming, im straight! Jeffries you are the king of cool, no matter what they say.
The problem with ppl like you and others here with your view,is that you have no morals or a concience. It’s what this company promotes that is the problem! Selling sex to minors, take their2003 Christmas field guide for instance. They want 8 yr. olds to walk around dressed like their 27 so they can be a target for rape! Let’s not forget the word our Lord Jesus Christ….1 corinthians 6:9 Do you not know that the unrighteous will not inherit the kingdom of God? Do not be decieved. Neither fornicators nor adulterers, nor homosexuals, nor sodomites, nor thieve, nor covetous, nor drunkards, nor revilers, nor extortioners will inherit the kingdom of God. 1 Cor 6:19 Or do you not know that your body is the temple of the Holy Spirit who is in you, whom you have from God, and you are not your own. GOD BLESS
This is alienation at its best. Self righteous people who think they know and understand God. It disgusts me.
Abercrombie won’t change, and while this might concern a lot of people, there are.. How to put it? Larger fish to fry than a retail company. If people are idiotic enough to buy into their ‘brand’ then so be it. But clothing wise, when you get down to it, they sell some soft, not all that expensive shirts. I like their clothes.
TIME just selected Abercrombie & Fitch as the “world’s worst recession brand,” reporting that Abercrombie has suffered double-digit same-store-sales declines for the past 10 months.
There’s nothing special about Abercrombie clothes. All they do is charge a lot more for them. Don’t buy close from them, they don’t deserve business.
above^^ how do u spell clothes correct and then wrong (close) in the next sentence… yea, u should shop at aeropostale! lmao
abercrombie and fitch for about two years and i have to say this is brilliant. jeffries is a pig. “you dont alienate anybody”!? are you freakin kidding me!?
medium def. im 13, 5′6” and 100 lbs and ive had to move one to a&f not because my height but just beacuse generally everything was too tight.
I’ve noticed that most of the people that are leaving negative comments about Abercrombie & Fitch can’t even write a coherent paragraph.
I work at abercrombie kids and for the guy who posted that he never got a raise: did you ever think you just weren’t a good worker? Each year they’re allowed to give a few people raises and the store manager gets to choose. For my smaller store, 2 raises were allowed and given to the two girls who worked the hardest, the most for over a year, and folded the best. Seems pretty fair to me.
I understand that people who can’t fit into the clothes are angry at the brand. For me, abercrombie is the only store I can fit in. I’m very slim and currently can’t fit into the 00 at the adult store just yet, but the kids store’s jeans have been fitting me perfectly for years. The clothes are made for slimmer people, just like how there are plus size stores. It only makes sense that the store would want to hire people who can represent the brand and actually wear the clothes, just like any other clothing store.
I think that the alienating of people depends on the district and regional managers. There are some unattractive people working at my store regularly because they are hard workers. Although, they probably won’t get to go to casting calls and be included in the store pictures; they still get to work all the same.
The reason abercrombie wants attractive people working there is because you must work there to be one of the models. Each store acts sort of like an agency. They don’t prefer attractive people only, but they do make an effort to get them into the store and give them hours so that the district manager and regional manager can see them and decide whether they’re casting call material.
(To Michael above) Really? I don’t know what else to say? Don’t you value anything deeper in life? I for one will not let my daughter wear clothing that is put out by a company that shows so little value for it’s customers and society. I don’t care if the clothing is spun with golden thread! Our values and what we stand for are what make us who we are – not what we wear. What a sad comment.
I know many people who work in retail (above the store level) and one who reported directly to Mike Jeffries for over 10 years. Yup, he’s a megalomaniac and probably pretty wierd to boot (I mean really, this guy’s a grampa with delusions of being a pretty college boy). BUT he helped take the company from a faded, failed camping store to an international brand, and he did it in a space of under 10 years. So give him credit for that, at least.
As for people who disagree with the company’s philosophy/hiring practices/catalogue pictures/whatever…just don’t work there or shop there. The fact that an idiotic, backward organization like Focus on the Family urges boycotting anything makes me want to buy that product for that reason only.
So lighten up, already. It’s just a mall store fercrissakes.
To the “cool” kids who think Abercrombie & Fitch produce and sell “the right” clothes. Please re-read the title of the article: “CEO Mike Jeffries Overvalues His Own Brand and Loses His Cool After Teen Shoppers and Investors Don’t Aspire To Abercrombie Any More” … EVEN Mike Jeffries (Mr. King of Cool) has recognized his Brand needs an overhaul. So, defending the culture seems a bit ignorant.
NEWSFLASH: egotistical, snobby, “mean” syndrome, and the like are no longer “cool”. The pompous demeanor and “too cool” attitude are dropping in popularity. Bullying has become a national hot topic and attitudes associated with that behavior are frowned upon.
The new cool is self-assured and confidence. It is comprised of knowing who you are and taking a stand for positive incremental improvements in your community. This includes standing up for the bullied as well as being a role model to younger kids by volunteering, treating others with respect, and becoming a “leader” with good morals and high standards.
**Side Note** You WILL find at your 20 year class reunion that the majority of the “cool” kids are retail managers, some sort of salesman, or unemployed. The not-so-cool kids are business owners, entrepreneurs, investors, developer, designers, etc.
Abercrombie & Fitch had its day. Unless the Brand changes its core it will not succeed in the coming years. It is not a classic or highly desired “name” by the largest demographic with the most disposable cash. It is a “fad” brand. It is also very cheap clothing sold at astronomical prices.
There is no value in the clothing other than the name of it. So, Jeffries has proven he is a fantastic marketing professional and a superb promoter. He sold cheap clothes to high school kids to be cool. That era is over. Even he realizes it … again … hence the name of the article.
Wow, gymnast were offended by A&F? Hahaha losers.. And religious groups.. Who cares about what they think?! These are people that believe in words that were written 2000 years ago by many different men over the course of hundreds of years… So why would anyone with a rational thinking head listen to them?? I do agree with a lot of things in your article.. But think it’s bogus that you criticize Jeffries on targeting a certain demographic.. I’m with Jeffries on that one, the fact that they have stayed true to their pricing and target certain customers lifts their brand up above the others.. I think it tacky how everyone else just begs for people to shop in their stores.. I do however feel Jeffries should bring more styles into the store, keeping the same look and feel of A&F, they just need to produce more than their same polos, girls tote bags, etc. It gets boring.. I don’t see why Jeffries doesn’t see this.. Over all your article seemed like you strongly disliked Jeffries which suggested your may have not been one of those “cool” kids back in your day? Idk, just a thought.. Seemed a little bias because of that..
Oh and you fail to mention their success opening numbers of stores over seas..
I guess I’ll never understand why uniform look should mean any coolness, it’s more annoying to me that people identify theirself just by a commercial brand. Poor mankind that’s only check’s for superficial character, usually inner awareness only starts at older ages if ever, for himself it seems not. I really enjoy being 90% non-branded or at least try to ask for quality and not simply for a brand. The majority of daily products like cell-phones, clothes, shoes, computers etc… has one very commoness “Made in China”, or anywhere where production are low as can be. So brands are mostly virtual quality or value especially when not being owned by the founder.
Love, love, love A and F. Of course it’s not for every body type. The clothes are cut to fit lean, athletic buiilds. Stop whining and don’t go there if you or your children aren’t built like that. My son looks FABULOLUS in their clothes!
Having worked at an Abercrombie (as a “model”) I gotta say, they cater to a form. They hire a form. And they are targeting a form. It was a great job, with pay raises, but those pay raises come at a price: that price is keeping your shape and promoting the image that they want you to promote. They want a sensory experience, and they’ve cultivated it. And it’s exclusionary and isolating as Jefferies wants it to be. In retrospect, it was a fun job to do in my teens, but now it seems a bit dirty to be paid based on looks in an occupation that wasn’t strictly “modeling” and to take part in isolating a cross section of consumers.
I think that the form is never going to go away, and they know this. They’re going to continue to profit off of it unless people stop buying into it.
My name is Beau and my life goal is to become
a model for A&F. I do not understand why anyone
Would become offended by a brand.
A&F is for the kids who are cool understand it
Because the rich kids are cool and poor kids
Are unpopular and can’t afford A&F. Also A&F is
A brand it’s a lifestyle it makes my MONTH to
Walk into that store and buy things. And all you
Hatred are probably reading this and thinking wow
This kid is stupid and shallow. Well I’m not I try I
Go out of my way to be nice to every one at my
School. Also I have a 3.2 gpa. My other plans for
Life are to become a playgirl after I’m done
Modeling for A&F and Hollister then become a
Business man in the oil business.
And another thing stop hatin on Jeffries I think that
He decided at a young age what he wanted in life
And that was money beauty and power and he got it
And now he has made a brand for kids born with
Money power and beauty.
Haters HOPP OFFF
Beau,
What. The. Hell.
Abercrombie is a sad little store in the mall. It will always be that way. It’s overpriced and it’s owner is a delusional, greedy man. There is nothing advantageous about this product, unless of course you’re 65 and still want to hit Cape Cod with 22 and 23 year old asexual yuppies.
“But it’s the only thing that fits!!!” Yeah right. People just love rationalizing rather than being rational.
Move along people, nothing to see here.