U.K. retail sales rose 0.7% in June, building on the modest 0.1% rise in May. But in the U.S., there is concern about tepid consumer spending that could result in an accumulation of inventory on merchants’ shelves.
Read also: UK Retail Sales Rise 0.7% Amid Good Weather and Sales
Retailers are exploring strategies to stimulate consumer spending beyond essential categories. They are leveraging retail concepts to convey narratives, be it a compelling comeback story or other engaging theme. Ultimately, it is up to the consumers to decide which stories resonate with them, and thus, brands are fine-tuning their storytelling to cater to specific audiences.
In late May, PYMNTS highlighted Abercrombie & Fitch’s strategic shift away from provocative advertising campaigns that featured young shirtless male models. The brand was able to transform its brand as a fashion symbol not only among millennials but also with the Generation Z.
Abercrombie is now looking to bring its newly transformed brand back to its home city — New York.
Abercrombie’s history is deeply intertwined with New York City. The company’s inaugural store was established on 36 South St. in downtown Manhattan. Now, after a considerable journey, Abercrombie is set to make its comeback in the city, this time at 668 Fifth Ave., between 52nd and 53rd streets.
The new store boasts distinctive slate detailing, complemented by elements of wood, textiles, greenery, and textured walls, designed to craft an upscale and refined ambiance.
“This store is a celebration of the evolution and strength of the Abercrombie brand,” said Fran Horowitz, CEO of Abercrombie & Fitch. “We are thrilled to offer our customers in New York City a new, immersive shopping experience that represents the absolute best of Abercrombie. This city has a storied place in our company’s history, where we opened our first store, and we’re proud to be here nearly 130 years later.”
The efforts follow a similar move made last year, in which the company unveiled its activewear brand, YPB (Your Personal Best). For a harmonious blend of style and performance, designers collaborated with models representing diverse body types and genders.
Furthermore, Abercrombie & Fitch introduced a novel store concept with a getaway theme, featuring a “chic hotel lobby” aesthetic. This concept made its debut last summer, with initial locations in Los Angeles and Milan.
In addition, Abercrombie has recently undertaken the task of revitalizing its other nostalgic brands, Hollister and Gilly Hicks, unveiling a new store concept side by side at the Liverpool One shopping complex in the U.K.
Spanning over 7,300 square feet, the store fully embraces a rejuvenated brand identity, tailored to resonate with the preferences of the shared teenage consumer base of Hollister and Gilly Hicks.
Abercrombie & Fitch said this store will serve as the blueprint for the brands’ expansion in Europe.
Abercrombie’s endeavors have yielded remarkable outcomes, evident from its announcement on May 24. The company surprised analysts by reporting an unexpected profit, surpassing their projections.
During the analysts’ call, CFO and COO Scott Lipesky said the company plans 40 new store openings, with a focus on strategic locations within the U.S.
Read more: Abercrombie Transforms Controversy Into Profits
At Paragon Shopping Centre, New Balance has introduced a retail concept centered around central seating gestures. The store’s design is crafted to foster a sense of community, encouraging customers to come together, draw inspiration from one another, and discover their authentic style.
“This store represents a big step forward in the way we think about our retail environment, featuring a much tighter, more focused collection built specifically for the younger consumer,” said Ian Fitzpatrick, senior director of global brand strategy and operations at New Balance.
The 1,679-square-foot store at Paragon offers a curated selection of merchandise, using visuals to showcase items and spotlight the makers and their origins, showing New Balance’s commitment to bridging the gap between sport and culture.
The new retail store will cater to both the elite athlete and fashion influencer, curating New Balance footwear and apparel with their preferences in mind.
“The space is not built to tell all our stories, just those most relevant to our consumers — a shift that reflects our intention to invite new audiences to discover the brand, maybe for the first time,” Fitzpatrick said.
The recently unveiled Singapore store marks the third of its kind worldwide. The concept was first introduced in Guangzhou, China, in December, followed by the second store in Boston in February.
Brands and retailers are adopting concepts that provide immersive and personalized experiences in order to attract browsers and buyers. This investment shows that retail has evolved into a fertile ground for impulse buying.
Even the most deliberate purchaser is susceptible to impulse buying. When a consumer enters a store, it indicates a certain level of purpose or interest in the available products.
As reported in May by PYMNTS, Kohl’s serves as a prime example of this concept. Despite a nearly 20% decline in digital sales during Q1 2023, Kohl’s in-store performance saw an improvement, primarily attributed to its successful shop-in-shop collaboration with Sephora.
Read more: Kohl’s Digital Sales Drop Nearly 20% in Q1 as Sephora Helps Improve In-Store Results
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