Abercrombie & Fitch's next CEO faces challenge to rebuild fashion brand
Teen clothing chain needs to find a new leader to rebuild brand in the face of online competition
Abercrombie & Fitch, a former purveyor of safari gear that was reborn as a teen clothing chain, is searching for its next incarnation.
The company, which announced the departure of long-time chief executive Mike Jeffries this week, needs a successor who can appeal to today's teens in an industry suffering from e-commerce competition and shrinking foot traffic. And it will have to emerge from the shadow of a man who has steered the brand for more than two decades.
"He actually was the brand," said Terre Simpson, president of executive search firm Simpson Associates. "Now it's almost as if they need retail psychotherapy to determine what the brand direction should be."
Jeffries stepped down as chief executive after the strategies that led to Abercrombie's success in the 1990s failed to resonate with current shoppers. The chain's shirtless models, booming music and conspicuous logos have lost their appeal, replaced by a desire for fast fashion and a lower-key selling style.
The new chief should be someone who understood operations and how to rebuild a brand, said Jena Abernathy, a senior partner at executive search firm Witt/Kieffer. The person would ideally come from an innovative retailer such as Hennes & Mauritz, she said.
Abercrombie said it was also considering internal candidates for the job. The top executive in line is Jonathan Ramsden, who joined the company in 2008 and was promoted to the newly created chief operating officer role in May. Another candidate is Christos Angelides, who became president of the Abercrombie brand in November after a career at Britain-based clothing chain Next.
Like many teen-apparel retailers, Abercrombie began struggling over the past decade, hurt by online rivals and the rise of cheaper alternatives such as H&M. Teens also turned away from clothes with logos emblazoned across the chest and searched for unique styles. As customers defected, Abercrombie suffered 11 quarters of same-store sales declines and a 77 per cent plunge in profit last year.