American Eagle Outfitters Vs Abercrombie & Fitch: Who Has Handled Store Consolidation Better?

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American Eagle Outfitters

Store consolidation appears to have worked much better for American Eagle, since its revenue per store has increased notably between 2011-2015 on average, with a closure of a number of under-performing stores. For both of Abercrombie’s brands (Abercrombie & Fitch and Hollister), the consolidation of stores hasn’t worked well considering its average revenue per store has declined considerably during the aforementioned period. Part of this can be attributed to the retailer’s merchandise issues.

The table below is indicative of the fact that American Eagle Outfitters has handled its consolidation strategy better than Abercrombie. This means that American Eagle has identified its poor performing stores well and has opened new ones at strategic locations to garner the highest footfall.

store consolidation comparison

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Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for American Eagle Outfitters
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