The Strategic Shift
The turning point came with the departure of CEO Mike Jeffries.
Under new leadership, Abercrombie new they needed to rebuild the brand reputation and image.
Peeling back the layers, here’s the strategic shifts to Abercrombie’s big comeback.
1 - Abercrombie redefined its target market
Abercrombie shifted the focus from teens to young adults, particularly millennials entering the workforce. They aligned the brand with a more mature and diverse audience
2 - Abercrombie redesigned its product
Abercrombie overhauled the clothing line to feature more sophisticated, versatile, and on-trend styles, appealing to a broader, style-conscious market.
3 - Abercrombie repositioned its brand
Abercrombie transformed from an exclusive, teen-centric brand to an inclusive, relatable one, emphasizing authenticity and diversity.
4 - Abercrombie rebuilt its marketing plan
Prioritizing Instagram and TikTok, Abercrombie leveraged social media and creator partnerships to engage a wider audience. *This was a big one for brand re-activation.
The Results:
→ Social Media Growth: From 2018 to 2021, social media reach increased by 1,980%, with 343 million TikTok hashtags (much credit going to their creator partnerships)
→ Stock Performance: A&F's stock rose 80.14% over a five-year period (as of 2022) and there was a 271% surge in stock value over a one-year period (as reported in 2021)
→ Sales Growth: In April 2024, Abercrombie & Fitch's revenue (12-mo) was $4.465B, a 20.01% increase year-over-year.
→ Customer Acquisition: Women’s apparel sales increased by 40% since 2018, adding 12 million new customers since 2018