Abercombie & Fitch Apparel Is A Natural Fit For Europe

Implications: The Abercrombie & Fitch brand is percieved as edgy, sexy and contemporary American fashion, making it a perfect candidate for European expansion. The company is growing its top line by inceasing square footage in the U. S. as comp store sales have been generally flat. The London store concept was based on the unique New york flagship store on fifth avenue and will be the model for the new stores throughout Europe.

Analysis: The tremendous success of Guess by Marciano in Europe and the Pacific Rim has demonstrated that young contemporary fashion rooted in American style is very appealing as a growth vehicle and the next logical step for Abercrombie & Fitch. The brands overtly sexy graphics, and high quality products make it a natural for youthful  European consumers seeking to emulate an American sense of fashion.

The company's growth has been legendary, but productivity in stores open at least one year is slowing and there is a not an infinite universe for the company to build new stores in the U.S.

Now that the concept has been successfully tested in London this template needs to be be replicated throughout Europe and eventually in Asia if the company is to continue its growth trend.

Not all American brands translate well for the European customer, especially those in the boomer segment but A&F seems to have the basic ingredients to thrive as a global powerhouse.