Things aren’t looking so hot for the once popular retail store, Aeropostale. They had experienced a decline in sales for 2013. According to internetretailer.com, the company reported fourth quarter declines for e-commerce and sales. The bad news keeps on rolling, as the company announced this week that they are launching a cost-reduction program that will include cutting 100 jobs in headquarters and closing 125 P.S kids stores (for kids 4-12 years old) out of their 150 in various malls. (Cue the echoes of pre-teen sobs.)
Aeropostale was once at the top of their game. Shopping at their store once gave middle school-ers a form of status when their striped polo had the Aeropostale butterfly logo on the side. What caused this switch? Was it the rise of price for that butterfly logo-ladened polo? Or was it that their fan base simply grew up?
In a call with Transcript Alpha, CEO Tom Johnson describes that for 2014, Aeropostale is “refining merchandising strategy for online business to match steps they have taken for brick-and-mortar stores.” Steps they have taken to increase shoppers include: product extensions (Pretty Little Liars and Bethany Mota line), expanding online exclusives, and increasing buys in extended sizes.
According to fierceretail.com Aeropostale reported a $70 million loss last year. The company announced a partnership with Sycamore Partners, which will provide the brand with a $150 million loan. Hopefully the brand can save it’s name with the introduction of extended lines appealing to teen interests. The Pretty Little Liars line inspired by the characters on the show and the line created by YouTube fashion sensation, Bethany Mota seemed to be a big hit with teens for a while, but the market, like teen trends, changes fast.
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