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Abercrombie & Fitch - which also owns Hollister and Abercrombie Kids - is closing several of its flagship stores in 2019. But the company has plans to also open 40 new stores across brands by the end of the year and invest in new experiences in 85 stores. It reported a 1% increase in same-store sales for the first quarter.
We visited the soon-to-close Hollister flagship store in New York and the American Eagle store across the street. We saw why American Eagle's strategy might be leading to stronger results.
When it comes to store design, American Eagle Outfitters and Hollister seem to have very little in common.
The dimly lit presentation in Hollister looks nothing like the light, summery showrooms in American Eagle. When juxtaposed, these stores are like night and day - quite literally - and you can see the impact in sales numbers.
American Eagle's sales have soared in recent years. Much of that success is owed to Aerie, its undergarments brand, which has become a key competitor for Victoria's Secret. American Eagle reported a 6% increase in same-store sales for the first quarter of 2019, with a 14% same-store sales increase for Aerie alone.
The same can't be said for Abercrombie & Fitch, which also owns Hollister and Abercrombie Kids. The company announced in March that it would be closing 40 stores in the 2019 fiscal year. It also has plans to open 40 new stores across brands by the end of the year and to invest in new experiences in 85 stores. It reported a 1% increase in same-store sales for the first quarter.
We went shopping at American Eagle and Hollister and saw the difference for ourselves. With Abercrombie making the move to smaller stores, it might do well to take a cue from American Eagle.
First, we stopped by the American Eagle Outfitters store on Broadway in New York City.
We were immediately struck by the amount of open space in the room. The tall ceilings and high shelves made for a spacious environment.
And the organization was beyond belief. We were pressed to find even one pair of jeans out of place in this vast display.
There was also a place to customize your own pair of jeans with different colored patches.
Upstairs, the women's section was full of different options for summer.
These skirts immediately got our attention with their interesting patterns and textures.
And the prices were similarly appealing — this patterned peasant crop top was $44.95.
The store was filled with an array of bright colors in different styles, from tank tops ...
... to t-shirts.
We also found a nice selection of colors in the Pride Month display.
We stopped by the Aerie section to see what all the hype was about. Aerie is American Eagle's undergarments brand, and it has recently been a serious competitor for Victoria's Secret.
We were not let down. Aerie had a huge selection on bras, underwear, and athleisure. Plus, everything was on sale for 40% off.
Aerie gives visibility to women of all shapes and sizes. These body-positive photos were scattered throughout the store.
Shopping at American Eagle felt like a breath of fresh air — the store's layout and design were simply relaxing. We noticed these potted plants on our way back down the escalator.
Downstairs, we took a look at the Urban Necessities pop-up shop that's attached to American Eagle.
The trendy resale brand sells shoes and clothing from Nike, Adidas, and Supreme.
The pop-up store made the experience at American Eagle even better — and more fun. This Supreme Pinball machine was super cool.
We left American Eagle feeling better than when we entered, a sign of a store experience done well.
Then we walked across the street to Hollister.
A sign in the window advertised 50% of select items.
Shopping at Hollister was a different experience from the very first step. The entrance of the store welcomed customers into the surfing-lodge theme.
The store was structured with smaller house-like segments built within the main room. The detail in the architecture was stunning, though it took up a lot of precious walking and browsing space.
The dark wood finishing combined with the dimly lit showrooms made for an overall somber atmosphere, largely different from the sunny rooms at American Eagle.
Though dark, most of the rooms were elaborately decorated. Sometimes — like in this Gilly Hicks room — there were lavish light structures.
Gilly Hicks — Abercrombie's undergarments brand — was relaunched in 2017 after closing in 2014. Since its relaunch, the swim and intimates brand has attracted more customers to the Hollister brand.
With a nice selection of items and cheap prices, Gilly Hicks was a worthy opponent for the Aerie selection across the street.
There was also a section of bathing suits to browse.
The clothing options were scant, which was understandable, considering that this store is expected to close by the end of the year. Either way, it was difficult to find much outside of jeans, shorts, and t-shirts.
The clearance room in the back was full of cheap items.
But throughout the rest of the store, the racks were almost completely empty.
With 50% off certain items, we were hardly surprised. The jeans shelves were almost completely empty — the deals were doing their job.
This bright yellow top was practically a steal.
Two other floors in the store were both closed. When we looked closer, we could see that they were almost completely empty, probably in preparation for the imminent closing.
We also found this neglected bin of Pride decorations in one of the back rooms.
There was a spacious enclosed sitting area near the fitting room — a nice touch to the decor, but maybe not the best choice for an already cramped store.
Even though it was on the dark side, this vintage wallpaper also added to the intricate detail of the store.
The Hollister flagship store was a cool experience for anyone who appreciates design. As a shopping experience, the dark rooms and narrow walking space left much to be desired.
With the move to smaller stores, Abercrombie and Hollister might do well to take a page from American Eagle's book.
