There have been numerous news reports that mall chain store Abercrombie has staunchly opposed reducing prices in stark contrast to the rest of the retail world. Reuters is reporting that a steady sales decline has many rethinking this strategy, especially when consumers in this market are only interested in steep markdowns.
“We’re in a different consumer environment. We’re in trench warfare with the consumer,” said Jefferies & Co analyst Randal Konik. “My fear is you have companies in the aspirational segment with aspirational price points … that are having real struggles.”
Abercrombie’s shares trade close to $21, down from a high of more than $82 hit in February.