This quote by Abercrombie CEO, Michael Jeffries in an earnings call with analysts last month. I guess many retailers will feel the after effects of the markdowns this season in the coming 2-4 months.
“Promotions are a short-term solution with dreadful long-term effects.”
Read more in this WSJ story, Abercrombie Fights Discount Tide (Registration required).
We hear your concerns," said Chairman and Chief Executive Michael Jeffries in an earnings call with analysts last month, but "promotions are a short-term solution with dreadful long-term effects." Marking down clothes now could lead to the brand being seen as something cheap, he explained.
Even in good times, Abercrombie has always shied away from big promotions, though it does try to clear out merchandise at the end of a season. The company's determination to keep prices high as the economy sours has already cost it dearly during the holiday season, which accounts for an estimated 30% of total teen retail sales.