Contemporary Retail Environments: Abercrombie & Fitch - Essay Example

? Contemporary Retail Environments: Abercrombie & Fitch Introduction Throughout malls, department stores, and standalone shops, everyday citizens areexposed to a jungle of retail environments. While these individuals are exposed to these retail environments on a daily basis, most are unaware of the carefully constructed nature of stores. In reality retail environments integrate a complex array of inputs, including environmental psychology, servicescapes, visual merchandising, and advanced layout procedures, as a means of gaining greatest sales and product efficiency. Such an understanding adds a significant degree of complexity to one’s generally carefree shopping mall experience, as competing forms of retail psychology compete for the hearts, minds, and pocketbooks of shoppers. One such company is the teen clothing store Abercrombie & Fitch. Through reference to contemporary retail theory, this report investigates Abercrombie & Fitch’s retail environment. Abercrombie & Fitch Background While Abercrombie & Fitch is popularly recognized for its modern fashions and pop culture style, the company has a long history dating back to the 19th century. Indeed, David Abercrombie and Ezra Fitch founded the company as a sporting goods store in 1892 (Zuidhof 2007). During the early 20th century David Abercrombie left the organization, but Ezra Fitch continued operations. Fitch would witness successful company operations and expansion until his retirement in 1928 (Zuidhof 2007). During the period Fitch controlled the organization they expanded from sporting goods to a wide-array of amenities, including clothing and board games. The organization was the first company to carry the game Mahjong and they even outfitted Charles Lindberg for his flight across the Atlantic. After Fitch’s retirement his brother-in-law James S. Cobb purchased the organization. After Cobb assumed controlled the organization further expanded, purchasing Von Lengerke & Detmold, a European dealer of sportings guns. The company continued in relative prosperity until the 1970s when they increasingly experienced declining revenue. Ultimately, the company was forced to declare chapter 11 bankruptcy. In 1977 the company closed until it was bought in 1978 by sporting goods retailer Oshman’s for $1.5 million (Zuidhof 2007). The Oshman era experienced tepid success until it was bought out in 1988 by Limited Brands (Zuidhof 2007). New president Sally Frame-Kasak would move the organization into a decidedly fashion retail direction. This direction was further enhanced in 1992 when clothing executive Michael S. Jeffries assumed the presidency. Jeffries would further shift company emphasis from simply clothing to teenage apparel. From this 1992 period until the present day the company has largely maintained this market structure and has expanded with relative success. The contemporary incarnation of Abercrombie & Fitch five brands: Abercrombie & Fitch, AbercrombieKids, Hollister and RUEHL and Gilly Hicks: Sydney brands. While each of these brands reaches out to different market segments structural changes in the retail environment, the Abercrombie & Fitch storefront, with its ‘classic cool’ theme, remains the flagship offering. Analysis Overarching Theoretical Paradigm One of the most overarching concerns in terms of Abercrombie & Fitch’s contemporary retail environment is the notion of the servicescape. Broadly speaking, the servicescape is the impact of the physical environment in which a service takes place. Booms and Bitner (1981, pg. 36) first established the notion of the servicescape, noting it is, “the environment in which the service is assembled and in which the seller and customer interact, combined with tangible commodities that facilitate performance or communication of the service.” Not merely Abercrombie & Fitch, but indeed all retail environments, this is a pervasive notion for its nearly all-encompassing subject criteria; indeed, Bitner (1992) expanded this notion to include three physical environmental dimensions: ambient conditions (these include temperature, noise, and odour); space/function or spatial layout (equipment, furnishings); and signs, symbols, and artefacts (located both internally and externally). Within the spectrum of examining the Abercrombie & Fitch retail environment the servicescape will to a degree function as an always-present consideration to which more specific theoretical models are applied. Strategic Approaches Nightclub Approach In articulating notions regarding the Abercrombie and Fitch retail environment one notes that the store is almost entirely beholden to teenage apparel. While the products are geared towards this age group and interest this does not necessarily mean that the specific servicescape elements are typical teenage themes. Rather analysts have noted that the store is targeted at, “teenagers who are legally not permitted to go out to nightclubs yet, this store mimics the trendy club scene” (Zuidhof 2007, pg. 39). While such an interpretation of the store environment holds a great degree of validity, it would be going too far in claiming that this is the central defining theme the Abercrombie retail strategy. Still, one considers Tuley and Chebat (2002) who argue for the implementation of an overall retail strategy. When one further considers contemporary retail environment theory in terms of this thesis there are a number of notable connections. One notion is that of atmospherics. Kotler (1973) indicated that atmospherics is the development of retail environments to produce specific emotional effects. In Abercrombie & Fitch one considers the largely dark environment. Generally one of the most important aspects of successful retail is creating a welcoming environment through a well-lit internal space, Abercrombie & Fitch directly eschews this trend for dark lighting that creates an atmospheric affect akin to the nightclub experience. Exclusivity Another overarching concerns in terms of Abercrombie & Fitch stores are the demonstration of a degree of exclusivity. Indeed, a general qualitative visit to one of these storefronts is a visceral experience in that the shopper will either feel tremendous identity with the environment or strong alienation. This exclusivity, while limiting the organization’s customer base, enhances customer loyalty and interest among its main market sectors. Perhaps one of the most notable aspects of this cultivation of exclusivity is that the organization has actively embraced this snob-like designation; indeed, CEO Mike Jeffries has indicated: A lot of people don't belong [in our clothes], and they can't belong. Are we exclusionary? Absolutely. Those companies that are in trouble are trying to target everybody: young, old, fat, skinny. But then you become totally vanilla. You don't alienate anybody, but you don't excite anybody, either Indeed, the organization has even taken steps to develop this exclusivity, famously offering to pay Jersey Shore Reality Star Mike ‘The Situation’ Sorrentino to not wear their clothing. In addition, the store has garnered significant criticism and even legal disputes regarding discriminatory hiring practices ("Abercrombie discrimination racism," 2010). The effect is a creation of a segmented brand identity as a means of carving out market share in a fiercely competitive retail environment. Exclusivity is also witnessed through the retail store as contributing to the establishment of a sort of rebellious stance in relation to parental norms. The implementation of such rebelliousness is witnessed in both the nightclub atmosphere the retail stores develop as well as their implementation of overt sexuality in wall decorations. This is successful as a retail appeal as in visiting the outlet store the consumer is committing an act of subversion to which the next logical step is purchasing the attire as a badge of honor. Ultimately, such an approach to exclusivity emerges in the retail environment in a number of contexts and comes to represent a persistent thesis in the overarching articulation of the store’s strategic approach. Sexuality One of the most unavoidable aspects of the Abercrombie & Fitch retail environment is the heavy-handed implementation of sexuality. In this context of understanding, one notes that sexuality comes to utilized in nearly all aspects of the organization’s brand, marketing, advertising, and sales mission. Coupled with exclusivity and the nightclub approach, sexuality constitutes one of the most important elements of the Abercrombie & Fitch retail environment. Pictures of attractive models are featured in both the external and internal environment. Notably, while Abercrombie & Fitch is a clothing store, much of the pictures and art adorning the walls is of individuals with next to no clothing. Indeed, an episode of the investigate journalism television program 60 Minutes argues, “60 Minutes explains, “that Abercrombie is the apparel industry's version of Hooters, hiring hotties to work on the sales floor and relegating less bodacious associates to the stock room” (Gross). These scantily clad models don’t function as a means of clothing advertising, but enhancing the notion of the Abercrombie & Fitch retail environment and clothing as a lifestyle choice. In large part one recognizes the semiotic implementation of these significatory patterns within the internal context of the Abercrombie & Fitch retail environment as a means of encouraging further market segmentation. In addition, theorists have argued that sexuality plays a pivotal role in terms of marketing. The images of provocative clothing that adorn the external and internal environments function as a come on to youth culture indicating that if they want to be attractive and sexy they must wear Abercrombie & Fitch clothing (Driessen 2005). Other such aspects of these significatory patterns of sexuality can be found in signs linked to products, as well as clothing designs. Pahler (2009, pg. 34) revealed that, the season phrase for April 2006 was “Spring Break Clothing Optional.” A few of the T-Shirt marketing phrases have been “Gentlemen Prefer Tig-O-Bitties” and “Mount Her Back” for the men and women’s clothing in Abercrombie and Fitch. A few more shirts had the phrases “Blondes Don’t Pay Cover, I’d Do Me, and An Awkward Morning Beats a Boring Night, and Who Needs Brains When You Have These? While there is a great degree of implementation of sexuality as a come on within the retail environment the extent that these themes have nefarious intentions is debated, with the company itself arguing they depict sexuality in a playful and honest way. Still, in either instance, the ultimate affect is the development of the Abercrombie & Fitch lifestyle. Atmospherics Music In further examining Abercrombie & Fitch’s servicescape in terms of the ambient conditions one notes the prominent factor music plays in the stores. Within this mode of understanding, one also considers the loud music as playing into this thematic undercurrent of the store as nightclub. Indeed, company sound director David Schwartz noted, "The vision for these stores was to design a retail environment that is as much about fashion as it is entertainment" (Schwartz 2007). As such the loud music playing in Abercrombie & Fitch has both the intention of creating a club-like retail environment as well as further enhancing the organization’s level of exclusivity through alienating individuals and demographics not particularly attuned to this mode of expression. Indeed, the nature of music in this particular retail environment has largely been understated by current research. In reality it is difficult to overstate the meaning making importance of music to the retail environment. While the ‘loud’ nature of Abercrombie & Fitch’s sound selection is clearly an important aspect as it limits forms of social interaction that might occur in a Wal-Mart of Bloomingdales, it negates traditional popular music choices. Rather Abercrombie & Fitch largely implements electronic dance music. For instance, a general perusal of the organization’s in-store Christmas playlist demonstrates such song selections as “Cher (feat Rosie O'Donnell) - Christmas (Baby Please Come Home), StoneBridge (feat Therese) - Take Me Away, and Hungry Kids of Hungary – Wristwatch” ("A&f playlists," 2011). Such song selections both support the thesis of the Abercrombie & Fitch retail environment as mirroring a nightclub as well as demonstrating the organization’s implementation of exclusivity as a means of design. In terms of exclusivity one notes that the tracks selections are not generally heard on popular radio outlets and that the montage of dance tracks creates unique atmospheric conditions. As such Abercrombie & Fitch implements music to gain consumer commitment. In buying the Abercrombie & Fitch apparel the purchaser is not simply buying a clothing option, but is buying into an image of exclusivity and precociousness. Employees A major contributing element to the store’s atmospheric dimension is the employees themselves. While many retail environments seek to hire based on reliability or general age demographics, Abercrombie & Fitch regularly engages in hiring practices that are designed to further establish atmosphere and brand identity. CEO Michal Jefferies even has stated, “We hire good-looking people in our stores. Because good-looking people attract other good-looking people, and we want to market to cool, good-looking people. We don't market to anyone other than that." The organization has even gone as far as participating in practices that border on discrimination. In 2005 the organization was required to pay $40 million dollars in a settlement after being accused of only allowing African American, Indian, and other racial minorities to work in low visibility capacities (Bianchi, 2005). Such employee hiring practices are also recognized as having contributed to the establishment of brand identity. Bianchi (2005) notes the lawsuit required, “that Abercrombie abandon its practice of recruiting employees from predominantly white fraternities and sororities, a practice that helped Abercrombie develop its trademark "A&F look." Indeed, the purpose of hiring specific employees is to exemplify the lifestyle of the company and reinforce it through action and dress. As such the employees and employee placement actively contribute to the store’s retail environment. Miscellaneous In addition to the previously considered aspects there are a number of miscellaneous elements that also contribute to the Abercrombie & Fitch retail environment atmosphere. One such consideration is the walls and lounge couches visitors can sit on and socialize. The couch inclusion serves the important function of encouraging visitor interaction. This has the dual advantage of lengthening the time visitors are willing to stay in the store and further creating a dimension of cliquish exclusivity, with only a certain demographic ‘cool’ enough to hang out in the retail environment. Another notable atmospheric element is the inclusion of a specific Abercrombie & Fitch scent. This scent is such an important strategic element for the store’s atmosphere that store associates are required to regularly re-spray the scent at specially designated times. The importance of scent to creating specific emotional and visceral experiences is a well-understood byproduct of the human sense system and further demonstrates the high importance Abercrombie & Fitch places on the in-store retail environment. Physical Dimensions External Layout The nature of the Abercrombie & Fitch store layout also greatly contributes to their retail environment. Contemporary retail environment theory divides between internal and external aspects of store layout. For Abercrombie & Fitch the external layout is composed of white molding and black louvers, with the currently featured marketing image directly facing the entrance. This external layout implements a dramaturgical approach with the black louvers like structures functioning as a sort of stage-like designation inviting the consumer to enter into what Pine and Gilmore (1998.1999) refer to as the ‘experience economy’. It also operates as a stylistic attention grabber in the competitive mall environment as well as exhibiting a particular stylistic verve in part attesting to the apparel’s socioeconomic positioning. As such, the Abercrombie & Fitch retail external environment functions not simply through creating exclusivity and brand identity, but also by inviting the consumer to enter and participate in a real-time dramaturgical experience. Internal Layout While a number of internal layout elements have already been considered there are a number of further physical components related to the store environment. In this context of understanding, the store implements a largely free form structure. It’s been argued that the dim lighting, which also contributes to the nightclub like atmosphere, lets “the purchaser appreciate the superb vibes. The dim brightness lets the consumers strain a lot less and appreciate the in-store search” ("Abercrombie & fitch," 2011). In addition to the physical dimensions of the internal elements of music also play important structural roles; in these regards, it’s argued, “The A&F outlets maintain out electric dance tunes in regards to the great ambience. The tunes let the purchaser relax and shop along” ("Abercrombie & fitch," 2011). In terms of further physical components the store implements a division between men and women’s clothing. There is also further implementation of tables, racks, walls, t-stands, closets, mannequins, and window displays. These elements predominantly serve functional utilities in the retail environment, but are also recognized as contributing to the general atmosphere and style. Conclusion In conclusion, this essay has examined the retail environment of clothing apparel organization Abercrombie & Fitch in terms of pervading retail theory. In this context of understanding, Bitner’s notion of the servicescape is presented as an overarching critical paradigm. The investigation demonstrates that the organization implements the strategic approaches of the nightclub environment, exclusivity, and sexuality as foundational themes in their retail approach. Further consideration is given to the implementation of atmospherics through specific consideration of music and employee hiring. Finally, physical dimensions of internal and external layout are examined. Ultimately, it’s clear that Abercrombie & Fitch implements a number of subtle and explicit mechanisms as a means of achieving greatest profit efficiency in their retail environment space. References A&f playlists. (2011). Retrieved from http://www.anfplaylists.com/ Abercrombie discrimination racism lawsuit. (2010). Retrieved from http://www.afjustice.com/index.htm Abercrombie & fitch outlets sale layouts. (2011). Retrieved from http://www.abercrombieoutletonlinestore.com/news/abercrombie--fitch-outlets-sale-layout-and-structure-99.htm Bianchi, A. (2005). Abercrombie & fitch - a model of employment discrimination?. Retrieved from http://www.thehumanequation.com/en/news_rss/articles/2005/Abercrombie_Fitch_Model_of_Employment_Discrimination.aspx Bitner, J and Booms, B; (1981) Marketing Strategies and Organization Structures for service firms. Bitner, MF. (1992) ‘Servicescape: the Impact of Physical Surroundings of Customers and Employees.’ American Marketing Association. Vol. 56, No. 2. Driessen, Claire E. “Message Communication in Advertising: Selling the Abercrombie and Fitch Image.” 2005. Journal of Undergraduate Research VIII. 29 Gross, Daniel. “Abercrombie and Fitch’s Blue Christmas.” Slate. 8 December 2003. 20 October 2009. . Kotler, Philip (1973) Atmospherics as a Marketing Tool. Volme 49. Number 4. Winter. Pahler, Emily. (2009) Abercrombie & Fitch: The Altering of Cultural Norms. California Polytechnic State University Pine, J. and Gilmore, J. (1999) The Experience Economy, Harvard Business School Press, Boston, 1999. Schwartz, David. Abercrombie and fitch's historic london location outfitted with meyer sound . (2007). Retrieved from http://www.meyersound.com/news/2007/london_abercrombie/?type=56 Smith, Aaron (2011). "Abercrombie Drops 9% after 'Jersey Shore' Diss". CNN. Retrieved August 17, 2011. Turley, L. W. and Chebat, J (2002) ‘Linking retail strategy, atmospheric design and shopping behaviour’, Journal of Marketing Management 18(1-2): 125-144 Zuidhof, Janneke. (2007) Towards meaningful brand experiences in physical in- store environments. Read More