A&F All About Full Retail Price
By George Anderson
Nothing is on sale at Abercrombie & Fitch.
As a report in the Los Angeles Times last week pointed out, while other retailers were drastically cutting prices to move merchandise on the heels of the 2005 holiday season, nothing was on sale at A&F.
The retailer’s strategy has been to hold to full price on its goods, and analysts say it has worked to not only increase margins but sales, as well. Of particular note, the company’s determination to stick to its full retail-pricing model came after a number of years of flat or declining sales.
According to the LA Times report, same store increases of 23 percent in November and 29 percent in December compared to the broad specialty apparel retail business which saw a 3.2 percent and 1.5 percent increase during the same period.
Moderator’s Comment: Are retailers giving the store away and selling things too cheaply? How do retailers go about finding the “right” price to sell
George Anderson – Moderator