Abercrombie & Fitch Case Study

1057 Words5 Pages
2.0 The Industry Structure There are some factors for retail speciality shops: capability to expeditiously determine key trends and revolve the trends into saleable merchandises, favorable new shops additions, in-store presentation, capability to manage stocks flow at abundant shops and stores, proficiency in real possessions (Eundeok and Kim, 2015). Specialty retail shops frequently embellish a higher point of the price than any other clothing or apparel stores. Consequently, these shops consider to promote a stronghold in 'A' shopping malls. There is no explicit explanation for an 'A' malls versus 'B' or 'C', retailers commonly consider to the demographics, local economy, types of anchors, occupancy and sales per sq. foot to identify each categories (Eundeok and Kim, 2015). Source: Goldman Sachs 2.1 Seasonal Business Abercrombie & Fitch, same as other retailers, is…show more content…
That significantly helps company to ensure its property (Abercrombie.sg, 2015). However, there are a number of restrictions and laws, which A&F Company has to follow such as regulations of shareholders, workers and employees. Issue employees laws have are considerable in response of the apparel industry the labour intensity. Trade regulations present critical role as well as it is endangered to foreign competition from states where its workers get significantly lower wage. 2.3.2 Economic Factors Economic slumps and booms affect A&F Company as a whole. Therefore, aspects such as interest rate, inflation and the oil price influence company. There are ninety percent of total expenditures involved in the main factors such as apparel, housing, services and food. Thereby, particularly in service and apparel had an analytically considerable effect of a 6.2 percent declines in 2003 (Sommers and Franklin, 2012). 2.3.3 Social
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