How low can Abercrombie go? After a spate of bad publicity, the chain decides to drop prices
Filed under: Shopping, Consumer Ally
On the heels of an embarrassing lawsuit over how the company mistreated an employee with a prosthetic arm, Abercrombie & Fitch announced same-store sales dropped 30 percent compared to the same period last year. And now the company is going to do what it once was too full of itself to do -- discount its prices.
Abercrombie has become a popular target from its provocative advertising to issues over the quality of its previously not discounted clothing (read about one woman's fight over problems with their Hollister line) to how it treats employees.
The company crowed in victory in the aftermath of the lawsuit filed in London by Riam Dean -- even though the company was ordered to pay her $15,000 for injury to her feelings -- because the court found Abercrombie didn't discriminate against her. And then Abercrombie announced that some of its best friends are disabled.
"We were happy to employ Ms. Dean, and we have always been, and will continue to be, supportive of the rights of disabled individuals."Abercrombie said in a statement.
Dean, 22, who was born without a left forearm, briefly worked in Abercrombie's flagship London store and wore a cardigan to cover where her prosthetic arm connected to her body. She was told by a manager her clothing violated the store's "look policy" and was shifted to the stock room.
The law school student quit after five shifts and filed a discrimination claim. Abercrombie, which has a handbook thick full of rules about employee appearance, is seen by many as trying to sell its clothing through a not-very-disguised use of sexual overtones. And Dean's prosthetic arm was viewed as a turn-off. An employment panel that heard her case determined she was harassed, insulted and unlawfully dismissed, but did not find she was discriminated against.
Meanwhile, the company hasn't exactly been having its best run.
"We continued to be confronted with very challenging conditions during the second quarter," CEO Mike Jeffries said. in a written statement. "We believe we are doing the right things to address those challenges and improve our domestic business. In the meantime, we remain very encouraged by our prospects for international growth."
In those words and in the company's earnings report is a clear message: It's time to try to grow our business in other countries. Perhaps their reputation is better in certain parts of Europe. It would seems as though they might have some issues in London.
The CEO also told analysts during a conference call on earnings that it is going to offer discounts and will continue to examine its pricing. Seems like they might be a little late, having already lost a lot of customer loyalty in the U.S. Buying folks back with cheaper prices is worth a shot, though.
Abercrombie has become a popular target from its provocative advertising to issues over the quality of its previously not discounted clothing (read about one woman's fight over problems with their Hollister line) to how it treats employees.
The company crowed in victory in the aftermath of the lawsuit filed in London by Riam Dean -- even though the company was ordered to pay her $15,000 for injury to her feelings -- because the court found Abercrombie didn't discriminate against her. And then Abercrombie announced that some of its best friends are disabled.
"We were happy to employ Ms. Dean, and we have always been, and will continue to be, supportive of the rights of disabled individuals."Abercrombie said in a statement.
Dean, 22, who was born without a left forearm, briefly worked in Abercrombie's flagship London store and wore a cardigan to cover where her prosthetic arm connected to her body. She was told by a manager her clothing violated the store's "look policy" and was shifted to the stock room.
The law school student quit after five shifts and filed a discrimination claim. Abercrombie, which has a handbook thick full of rules about employee appearance, is seen by many as trying to sell its clothing through a not-very-disguised use of sexual overtones. And Dean's prosthetic arm was viewed as a turn-off. An employment panel that heard her case determined she was harassed, insulted and unlawfully dismissed, but did not find she was discriminated against.
Meanwhile, the company hasn't exactly been having its best run.
"We continued to be confronted with very challenging conditions during the second quarter," CEO Mike Jeffries said. in a written statement. "We believe we are doing the right things to address those challenges and improve our domestic business. In the meantime, we remain very encouraged by our prospects for international growth."
In those words and in the company's earnings report is a clear message: It's time to try to grow our business in other countries. Perhaps their reputation is better in certain parts of Europe. It would seems as though they might have some issues in London.
The CEO also told analysts during a conference call on earnings that it is going to offer discounts and will continue to examine its pricing. Seems like they might be a little late, having already lost a lot of customer loyalty in the U.S. Buying folks back with cheaper prices is worth a shot, though.
Reader Comments (Page 1 of 19)
8-14-2009 @ 2:09PM
Kat1 said...
You know, even after all that Abercrombie went through on this issue, they should now know, or have been advised, that Ms. Dean is not a "disabled" individual, but a "differently ABLED" individual. Duh.
Reply
8-14-2009 @ 3:51PM
Maureen Fleming said...
I agree with Kati1. PLUS-- there's nothing more encouraging than to see a place that hires handicap people! We need this sense of encouragement, and inspiration!
8-14-2009 @ 5:47PM
J. money funk said...
never thought of it that way
8-14-2009 @ 2:09PM
Anna said...
I do not believe that they should just get away with something like that, yea they said that they have "friends" that are disabled, but hey. Um, are they saying that just cause they labelled a a disabeled person as their "friend", does that mean that they like them? No! Their just trying to cover up the real truth so that their provocative clothing advertisement store, could stay in business. Whatever!!!
Reply
8-14-2009 @ 4:25PM
Dez said...
Hey Anna- How about a spell check and proper usage of contractions like "they're" for they are. Good points though!
8-14-2009 @ 7:34PM
frank said...
inorgant??
8-15-2009 @ 11:23AM
Timothy said...
This is what retail work is becoming nowadays in the USA with the economy as it is. They are tightening all aspects, and trying to make everything more efficient. If someone can do your job faster, or better, or cheaper, you will likely be let go- though not for any reason related to your disability. The employer will usually wait until you mess something up, and will fire you for that "policy violation" or "misconduct" as the stated reason. Etc.
People with disabilities of any kind are being more and more screwed. Especially in right-to-work states. All that "we're supportive of, and proud to employ disabled people" is just the compulsory public relations rhetoric.
Reply
8-14-2009 @ 2:21PM
tom said...
SCREW YOU AND YOUR BULLSHIT
Reply
8-14-2009 @ 2:19PM
WHITEDOVE said...
excuse me , how do you have a judge say sorry A&F. you harrassed her hide her in back room , embarrassed about obviously, but sorry mam, they did NOT discriminate,, how do you speak with fork tongue and call it ok
Reply
8-14-2009 @ 5:40PM
betty said...
Couldn't quite grasp that one myself!
8-14-2009 @ 6:45PM
Peetamo said...
I just finished Business Law - most likely they have to establish a pattern, an she was only there for 5 shifts. That is my guess. The info did not tell when she was sent to the back. Not that I am agreeing, they were really stupid. She is a beautiful gal and they could have gone a long way to dispelling their err's of old...
In truth - Abercrombie appeals to WASPS, so they should just hire dogs to work there. WASPs love their dogs more than people. I know because I am one and I prefer dogs :)
8-14-2009 @ 2:22PM
becky said...
Abercrombie sucks anyway. When people that are no longer in high school wearing that stuff it makes me laugh. The clothes look the same every season and are way over priced for what you actually get. And it's absolutely ridiculous how much perfume and cologne they spray in the stores. The stuff smells good, but not when you have to inhale it bc there is no more oxygen left in the air.
Reply
8-14-2009 @ 2:52PM
Harley said...
thats ridiculous. You dont like Abercrombie? Oh, well. You dont need to insult it to get your point across. Thats just ignorant.
8-14-2009 @ 2:55PM
Harley said...
ok, thats ridiculous. You dont like abercrombie? oh, well. you dont need to insult it to get your point across thats just ignorant.
8-14-2009 @ 4:07PM
Leah said...
i know! their clothes don't even have real style, people just wear them so they can blend in with the rest of the masses of conforming teenagers. its not ignorant, its obvious. theres NO individuality. and, they're wayyyyy overpriced for shirts that start pilling after a couple washes.
8-14-2009 @ 4:49PM
Sheila said...
I agree. You ONLY pay for the brand name. Those tight fitting tees for juniors are sooooooooo thin and cheaply made from China anyhow and to sell them for over 20 bucks each is such a rip off. I would never pay that for used.
8-14-2009 @ 6:11PM
Julian said...
Finally someone who sees what I do. I have friends in school that always wear A&F and when they say to me "I got a new shirt"...I can't even tell because their entire wardrobe looks the same. And if you're going to pay for over priced clothes atleast let them be good quality and unique.
8-14-2009 @ 6:32PM
Kenni said...
What i dont get is why people even buy them, all their clothes are just duplicates of things you can buy @ old navy and target except for the fact that they have Abercrombie printed over the ass and chest oh and did i mention they are 3 times the price,
8-14-2009 @ 2:24PM
Jimm said...
Abercrombie is a pretentious cult. I went through there interview process for management and it was completely rediculous. They told me that they dont have sales associates because the clothes and the catalog sell themselves. And that they encourage their "brand represenatives" not to help customers. But to only ring them up at the cash wrap or escort them to the dressing room. And that they use "brand represenatives" as walking mannequins. They must wear in season products. And that includes management. Even though they only give employees like a 20% discount!!
I passed on it after the second interview and said it wasnt going to be a fit for me. I guess I'm old skool because I believe in being nice to the customers and staff.
That company is messed up. They think its a "way of life" and not just a retail store!. Gimme a break!!
Reply
8-14-2009 @ 2:32PM
patrick said...
its a 40% DISCOUNT... They absolutely teach, and expect excellent cust. service from their team... And yes, it still sucks bad to work there!!