Abercrombie Discounts…but for how long?

Just wanted to make a quick post about Abercrombie & Fitch and Hollister. I like the brand and clothing they offer, however, the prices are way too high. For the longest time they have held the cachet of being a premium brand and charging exorbitant prices for their clothing. They do have sales and offer discounts sometimes, yet their prices still are way off mark. They just posted a loss in the last quarter, big surprise. For way too long they have sat on their high and mighty pedestal thinking they can still keep premium prices at a recessionary time. Meanwhile, competitors like American Eagle and Aeropostale have been discounting and driving more profit and posting gains. Finally Abercrombie has decided to lower marked prices, but I think it’s too late. I highly doubt anyone buys anything in their stores at normal prices anyways, and now consumers rely on end of season clear-outs to make most of their purchases. This could be a smart move in the short term (to lower prices), but will undoubtably chip away at their rationalization for charging $80 for shorts once the recession is over. I for one make a mental shopping list when I see things I like, then two months later get that item at 40-50% off when it goes on sale.
Abercrombie Values

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