Teen retailer Abercrombie & Fitch Co. (NYSE:ANF) announced that it would stop hiring staff based on aesthetics. The company had a policy of hiring sales staff based on attractiveness. The company is also set to relax its “look policy”.
Stores of Abercrombie will no longer be decorated with shirtless models as the company rolls back its sex tinged marketing. In a news release, Abercrombie stated that it would no longer be using sexualized marketing in marketing materials including gift cards and in-store photos.
These changes are a break from the highly sexual tone set by former CEO Mike Jeffries. Mike Jeffries’ marketing strategy created a cult following with teens who sought Abercrombie’s logo-emblazoned T-shirts and paid full price for tattered jeans.
The sexualized marketing of Abercrombie started to falter in recent years with teen shoppers gravitating towards cheaper alternatives. For the past three years, the sales of Abercrombie had been declining. The company’s earnings and total sales have fallen, and its shares are down by about 39% over the last year.
Experts have warned that by moving away from its sexualized image without creating an alternative distinctive image, Abercrombie was potentially risking standing for nothing. According to Jeff Gomez, chief executive of Starlight Runner Entertainment, Abercrombie could lose out on branding if it makes the switch from its aestheticized image.
According to Fran Horowitz, president of Abercrombie’s Hollister brand, the company is making the transition while keeping the spirit of things alive while modernizing the brand.
The next CEO will have his hands full as far as business goes. Abercrombie ranked last among sixteen apparel brands in customer loyalty. The company hasn’t held the No. 1 slot since 2011. According to Robert Passikoff, Brand Key’s president, Abercrombie’s tactics are not working anymore, and shirtless models are outdated.
Abercrombie would be making other changes as it looks to improve its sales. The changes may resonate with some teenagers.
