Following a 9% drop in sales in 2016, Abercrombie & Fitch announced they will be closing 60 stores in 2017. This isn’t a new trend though, the store closed 54 locations last year and has been closing stores yearly for some time. But even after the cuts this year the retailer will still have 647 physical locations.
Though the closures seem bad, CEO, Fran Horowitz is actually very optimistic about the future of the brand:
“Hollister, our largest brand, achieved positive comp sales and the Abercrombie brand renewal continues, although it is a work in progress. While overall results did not meet expectations, 2016 was a year of significant progress on each of our strategic priorities.”
It seems like the company is actually making some smart moves as they adapt to current retail trends. Less stores means more money for the brand to invest in an online retail presence, which is undoubtedly a necessity for retailers in today’s world.