Aéropostale and other American clothing giants are struggling to right their sinking ship as teenagers are rapidly changing their perception about fashion. These brands' failures are attributed to teens wanting to stand out and wear clothes with more personality -- a far cry from the youngsters of years ago who want to blend in and conform.
The rising culture of individuality is pushing teenagers to flock to trendier stores such as Forever 21, H&M and Zara, according to a report from St. Louis Post-Dispatch. All of a sudden, teenagers don't want to wear logo apparel anymore -- an Aéropostale staple -- and they are perfectly happy to stand out among their peers through their fashion sense.
In May, Aéropostale filed for Chapter 11 bankruptcy protection and closed more than 150 stores, Parent Herald previously reported. Established in the early 1980s, Aéropostale was profitable in 2011 with annual sales hitting $2.4 billion. But teenagers don't want to wear logos anymore and at first, Aéropostale refused to adapt to their changing views.
When it became clear that teens aren't coming back to logo apparel, Aéropostale scrambled to copy fast-fashion companies like H&M, Forever 21 and Zara. That move backfired, though, as it propelled more customers away from the brand. Even loyal shoppers shunned Aéropostale because the clothes looked so different from what they were used to.
Adheer Bahulkar, a partner at consulting firm A.T. Kearney, said that these reinventions made Aéropostale lose its identity and design aesthetic. Julian Geiger became Aéropostale's CEO in 2014 to save the brand through clothes that attract 14 to 17-year-old girls with a "flirty tomboy" persona. The move was ineffective.
Other failing American clothing giants have somehow revived themselves in the midst of the changing teen market. American Eagle, for instance, found solace by recasting its popular denim jeans. A&F is adding more sophistication to its apparel to capture older customers' interest.
Authentic Brands Group, Simon Properties, and General Growth Properties have bought Aéropostale for $243 million, according to the New York Post. Authentic Brands Group, the brand management company responsible for reviving Aéropostale, is making efforts to grow the retailer "on a global scale," St. Louis Post-Dispatch further reported.
In September, it was announced that the new owners of the failing brand will spare up to 475 stores, with plenty of landlords agreeing to lower rents. The new owners are also inking deals with other mall operators that have Aéropostale as a tenant. This would save 7,000 jobs while the three firms are reorganizing the brand.
