Abercrombie and Fitch: International expansion external and internal analysis
Abercrombie and Fitch:
International expansion external and internal analysis
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Business Mgmt
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Date Here
Executive Summary
This case study was identified to examine why international sales volume of Abercrombie and Fitch have increased over the past three years and to recommend further international expansion to increase sales volume.
The research draws attention to the fact that in 2009, the US stores generated 81.2% of Abercrombie and Fitch’s net sales. The shares of international stores and direct-to-consumer net sales were very small in comparison. Over the next two years the US stores decreased net sales percentages while net sales increased. Further investigation reveal that the US market shrinkage in terms of overall company net sales percentage coincided with the increase in international sales and direct-to-consumer sales and the overall company net sales percentage over the same time period. Since the economic downturn in the US economy in 2008 the disposable income for Abercrombie and Fitch clients appeared to decrease. Additionally individuals were utilizing disposable income for other items such as technology, cell phones and other gadgets. These two items appeared to be the major causes of the decreased company percentage in net sales of Abercrombie and Fitch in the US.
During the same two year period the international stores and direct-to-consumer net sales increased dramatically. This was an increase of 342% for international stores and 190% for direct-to-consumer sales over the same two year period.
Abercrombie and Fitch have identified that international expansion is the key to the company’s success. The case study evaluates the economic situation within the European union and its effects on the global economy and identifies the impacts on the retail industry risks, specifically for Abercrombie and Fitch. All current financials and ratios can be found in the appendices. Results
International expansion external and internal analysis
Name Here
Business Mgmt
Name Here
Date Here
Executive Summary
This case study was identified to examine why international sales volume of Abercrombie and Fitch have increased over the past three years and to recommend further international expansion to increase sales volume.
The research draws attention to the fact that in 2009, the US stores generated 81.2% of Abercrombie and Fitch’s net sales. The shares of international stores and direct-to-consumer net sales were very small in comparison. Over the next two years the US stores decreased net sales percentages while net sales increased. Further investigation reveal that the US market shrinkage in terms of overall company net sales percentage coincided with the increase in international sales and direct-to-consumer sales and the overall company net sales percentage over the same time period. Since the economic downturn in the US economy in 2008 the disposable income for Abercrombie and Fitch clients appeared to decrease. Additionally individuals were utilizing disposable income for other items such as technology, cell phones and other gadgets. These two items appeared to be the major causes of the decreased company percentage in net sales of Abercrombie and Fitch in the US.
During the same two year period the international stores and direct-to-consumer net sales increased dramatically. This was an increase of 342% for international stores and 190% for direct-to-consumer sales over the same two year period.
Abercrombie and Fitch have identified that international expansion is the key to the company’s success. The case study evaluates the economic situation within the European union and its effects on the global economy and identifies the impacts on the retail industry risks, specifically for Abercrombie and Fitch. All current financials and ratios can be found in the appendices. Results
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