Report: Abercrombie & Fitch closing 3 Twin Cities stores

5:00 PM, Jan 21, 2012   |    comments
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MAPLE GROVE, Minn. - Abercrombie and Fitch is closing 110 stores nationwide.

"They haven't been doing well," says Dr. David Brennan, a professor at the University of St. Thomas and co-director of the Institute of Retailing Excellence. "They've had a lot of underperformers."

According to a blog on Minneapolis-St. Paul magazine's website, the Abercrombie stores at Southdale, Ridgedale and the Shoppes at Arbor Lakes will close.

"Their merchandise is priced relatively high relative to their costs," says Dr. Brennan. "At one point their margins were 65 to 75 percent."

With the Mall of America, the Twin Cities market is used to the ever-changing retail world. Concept stores often use the Mall of America as a test site.
"If you can make it here in flyover land, it's a good deal for the country as a whole," says Dr. Brennan.

Attempts by KARE 11 to connect with Abercrombie and Fitch have been unsuccessful but Dr. Brennan suggests that if you are seeing more "coming and going" in the local retail scene, you're probably right.

"This is typically the time of year when leases end and leases are renewed," he says. "But it's critical for shopping centers to keep their retail mix fresh."

(Copyright 2012 KARE. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

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