American Apparel has recently been making headlines, and the brand isn’t selling like it used to. American Appearl’s sales are down by 9% and they lost $26.4 million during the first 3 months of 2015. The sexual harassment scandal that forced former CEO Dov Charney to step down is most likely not the reason why, it’s the product.
Some of American Apparel’s top sellers are jean shorts, tennis skirts, power-wash T-shirts, and body suits. Ill fitted men’s pants are among the lowest selling items. The company is getting backlogged with products that are hard to sell.
Current CEO Paula Schneider believes she might have a solution to the problem. First and for most she is not going to have a dot sale, because it can damage the brand’s image and make the store look like it’s going out of business. “That was the most egregious thing ever, in my mind.” she stated. Some items will hit the sale rack but the next task to tackle is the floor set up. For example men’s hoodies take up too much space on the floor, and she also believes that placing slow moving items with popular items will increase the sales.
Another specific area she wants to focus on is the demographic which AA referrers to as “Classic Girl” (ages 25-35.) Schneider feels that there are not enough options for the girls who have grown with the brand but no longer want all the super short and revealing items. She feels they’ve got the high school girl and party girl look covered.
However, Schneider is not that involved in the designs. She told Fashionista “We had a design brief, and I said, ‘Just show me who you’re making it for, and you guys can continue on your way[.]'”
For fall you can expect 100 new styles, including faux silk and matching top/skirt combos. It will interesting to see how American Apparel appeals to the “Classic Girl.”
