Today, Explained: How Abercrombie Made a Comeback

Episode Release Date: November 29, 2024
Hosts: Noelle King and Sean Rameswaram
Produced by Vox

1. Introduction

In this episode of Today, Explained, hosts Noelle King and Elizabeth Segrin delve into the tumultuous journey of Abercrombie & Fitch (A&F), tracing its rise to fame, subsequent fall due to multiple scandals, and its impressive resurgence in the fashion industry.

2. Abercrombie & Fitch: The Glory Days

Noelle King sets the stage by reminiscing about the late 1990s and early 2000s, a period when Abercrombie & Fitch epitomized teenage fashion in America. "Abercrombie didn't invent the American Teenager. Hollywood did that," King remarks (00:04). During this era, the brand was synonymous with preppy, hypersexualized apparel that resonated deeply with the youth, largely due to its strategic marketing under CEO Mike Jeffries.

Elizabeth Segrin, a senior staff writer at Fast Company, shares her first encounter with A&F in her teenage years, influenced by popular culture and iconic songs like LFO’s "Summer Girls," which famously mentions, "I like girls that wear Abercrombie and Fitch" (02:09). This cultural embedding made A&F a staple in teenage wardrobes across America.

3. The Downfall: Scandals and Financial Struggles

However, the brand's aggressive pursuit of the "cool kids" led to significant backlash. Elizabeth Segrin explains that Abercrombie's approach was overtly exclusionary and racially insensitive. In 2002, A&F released a T-shirt featuring offensive stereotypes, and by 2003, the brand faced a class-action lawsuit for discriminatory hiring practices, culminating in a Supreme Court case where A&F lost (09:00).

Segrin bluntly states, "Abercrombie was just so nakedly in pursuit of this kind of vision of exclusion" (07:48). These actions alienated a broad customer base, leading to financial decline especially during the Great Recession. By 2016, Abercrombie was voted the most hated retailer, and its stock plummeted, reflecting widespread consumer disapproval.

4. Turning the Tide: Rebranding and Inclusivity

Fast forward to 2019, Abercrombie initiated a dramatic transformation aimed at revitalizing its image. A new executive team came on board with a mission to foster inclusivity and broaden their demographic reach. "We like to say at Abercrombie today, it's about belonging. In the past, it was about fitting in," an Abercrombie representative explains (17:13).

Segrin highlights the strategic shift from targeting teenagers to focusing on individuals in their early 20s—an underserved market. The brand revamped its product line to include sleek, minimalist pieces suitable for professional and personal milestones, such as first jobs and weddings. Additionally, Abercrombie expanded its size range up to size 32, addressing long-standing inclusivity issues.

5. Influencer Marketing and Quiet Comeback

Instead of launching a traditional high-profile relaunch, Abercrombie opted for a subtle comeback strategy centered around influencer marketing and social media engagement. Elizabeth Segrin notes, "they were very quiet about this relaunch and they were just really hoping that it would spread by word of mouth" (20:06). This approach allowed the brand to re-enter the market without the baggage of its previous controversies, enabling new and old customers to rediscover Abercrombie organically.

6. Success Metrics and Future Outlook

The results of Abercrombie's strategic overhaul have been nothing short of remarkable. Last year, A&F's stock became the best-performing stock on the S&P index, surpassing giants like Nvidia with a 285% gain. The company reported $4 billion in revenue with a 10% year-over-year growth and is on track to reach a $5 billion revenue target (21:13).

Segrin emphasizes, "Abercrombie did both these things [targeting a new demographic and focusing on quality]. And I mean, look at how well it's doing," underscoring the effectiveness of their comprehensive strategy.

7. Conclusion

Abercrombie & Fitch's story is a testament to the possibility of redemption in the retail world. By acknowledging past mistakes and embracing inclusivity, quality, and strategic marketing, A&F has successfully reinvented itself. Elizabeth Segrin concludes, "I think the Abercrombie story shows us that if a brand has this long history and a place in American retail history, it can come back. But you have to be really smart about it and you have to be focused," offering hope and insight for other heritage brands facing similar struggles.

Notable Quotes:

• Noelle King: "Abercrombie didn't invent the American Teenager. Hollywood did that." (00:04)

• Elizabeth Segrin: "Abercrombie was just so nakedly in pursuit of this kind of vision of exclusion." (07:48)

• Abercrombie Representative: "We like to say at Abercrombie today, it's about belonging. In the past, it was about fitting in." (17:13)

• Elizabeth Segrin: "It is working remarkably well." (21:13)

Support for TODAY Explained comes from Expedia. Visit Expedia.com Unpacked25 to explore the latest travel trends and find your next destination.