Once again, an apparel retailer’s laser focus on its consumer proved successful, with Abercrombie & Fitch’s earnings release this week. The brand has defied countless retail odds and established itself as one of the specialty retailers to watch, especially compared to other mall-based apparel brands. Consumers have rewarded the company with traffic and sales growth; the company shared that first quarter comparable sales grew 21% year-over-year. Abercrombie & Fitch’s years-long transformation capitalized on all aspects of today’s retail non-negotiables: on trend product, perceived value, positive retail experience and a connection to consumers.
Abercrombie & Fitch’s successful quarterly earnings echoed traffic growth patterns observed by Placer. Looking at a grouping of five full-line stores and five outlet stores, we wanted to highlight the growth in importance of Abercrombie & Fitch’s fleet to the shopping centers its locations inhabit and also showcase the substantial growth in visits over its six year-long business transformation.
The grouping of full-line Abercrombie & Fitch stores captured less than 1% of the traffic to their respective shopping centers in Q1 2018; as of 2024, that capture rate increased by 25 basis points. The five outlet locations were slightly more important to their outlet centers, capturing about 2.5% of total shopping center traffic in Q1 2018. However, as of 2024, these stores grew their share by an impressive 84 basis points. Total traffic for the full-line store group in Q1 2024 grew 25% compared to the same period in 2018 and the outlet locations grew visits by 30% during the same period. Interestingly, the 2024 median household income for visits to the full-line stores decreased from 2018 but increased for the outlet group, which could both signal an increase in the caliber of outlet offerings but also a broadening of the full-line customer base.
Abercrombie & Fitch locations, since the store transformation began, have become more important tenants to their shopping center partners, and the “new era” of stores is primed to capture more visitor traffic over time. Abercrombie & Fitch’s rebound underscores both the importance of not only having a store fleet, but also optimizing that store fleet to work for today’s consumer. Changes to store design, merchandising and messaging have endeared the brand to a now more-mature Millennial consumer. The brand, once on the brink of demise, found its voice within a saturated clothing market, and its current success may provide a playbook for others in the retail industry.
