Abercrombie’s two-tier pricing strategy

A&F apparently prices its goods one way for the domestic market, another way in its overseas stores. From a recent RetailWire post:

I think the overseas pricing strategy is appropriate as long as A&F can get away with it. After all, several other American brands (Levis, for example) have a completely different cachet in foreign markets than in the U.S., and can price their goods accordingly. Obviously A&F’s offshore sales did not suffer to the same degree post-recession as they did in the U.S. — but I am also assuming these stores represent a relatively small percentage of their sales, although the WSJ article didn’t make it clear.
On the other hand, A&F’s initial refusal to budge on its price position in the U.S. (while almost all of their competitors recognized the “new normal” after 2008) is practically a case study in how to sacrifice responsibility to one’s shareholders at the altar of brand equity.


0 Responses to “Abercrombie’s two-tier pricing strategy”

  1. Leave a Comment

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s


%d bloggers like this: