Amid a highly challenging retail landscape, Abercrombie & Fitch Co. (ANF - Free Report) continues to strengthen its footprint, which in turn, boosts its overall performance in second-quarter fiscal 2017 results. To this end, the company is on track to expand its franchise in the Middle East along with its partner - Majid Al Futtaim. In fact, Abercrombie will inaugurate the first namesake store, which comprises a shop-in-shop for the abercrombie kids brand, at the Red Sea Mall in Jeddah, Saudi Arabia.
The 728 square meter store will be housed in the modern extension of the mall and will offer both the namesake and abercrombie kids’ Fall/Winter assortment for men, women and children, September onwards.
In 2016, Abercrombie had entered into a franchise agreement with Majid Al Futtaim, the leading shopping mall, communities and leisure pioneer, which brings top-tier fashion and retail brands across the Middle East, Africa and Asia. Per the agreement, Abercrombie’s brands will expand in Oman and Bahrain within due course of time.
Apart from launching this store, Majid Al Futtaim is also likely to open five more flagship as well as three abercrombie kids stores in the Middle East region under the franchise and joint venture agreements.
Markedly, the Abercrombie’s brand was first introduced in Kuwait by Majid Al Futtaim, both at 360 Mall and The Avenues. This was followed by opening of a namesake outlet in Mall of the Emirates in December 2015, which marked the brand’s first fragrance boutique. Again, two more stores opened doors in Qatar at Doha Festival City and Mall of Qatar this March.
Prior to the launch of Jeddah outlet, Abercrombie, which shares space with The Gap, Inc. (GPS - Free Report) , revealed its plans to introduce its new store concept at Tysons Corner Center. Earlier, the company announced expansion of its business in China by opening a store in Alibaba Group Holding Limited’s (BABA - Free Report) Tmall, which opened doors on Jul 26.
Abercrombie looks forward to enhance the customers’ shopping experience in Saudi Arabia with its solid omni-channel capabilities. This will further strengthen the company’s brand profile with a wider customer reach. Apart from being partner with Abercrombie, Majid Al Futtaim had also been in business ventures with leading retailers like Lululemon Athletica Inc. (LULU - Free Report) .
Abercrombie’s shares have gained 28.1% in the last one month, as against the industry’s fall of 10%. Also, its shares have outperformed the broader Retail-Wholesale sector that declined 1.1%. Currently, the company carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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