Headlines

A&F Might Shift its Business Model

Retailer looking at outside brands, other retailers’ outlets

Published

10 years ago

February 27, 2014

steve kaufman

Abercrombie & Fitch Co. (New Albany, Ohio) said it is considering two major shifts in its business model.

The retailer told Wall Street analysts that it is considering [1] expanding the number of outside brands it carries within its own stores; and [2] selling A&F branded merchandise to other retailers.

A&F ceo Michael Jeffries said the third-party brands would likely be in the areas of footwear, apparel and accessories.

“From a strategic standpoint, it is clear that we need to be thinking outside of the confines of our existing vertical specialty retail model,” Jeffries said. “It could be a very interesting opportunity. It’s interesting in terms of volume potential there. In terms of selling third party in our channels, there is volume opportunity, but it is also a positioning device for us.”

The company is also testing made-for-outlet merchandise.

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