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Store checks in London indicate momentum
We recently visited three stores from the Abercrombie family in London, and our
major takeaway was that momentum and pricing power remains strong. Prices
were much higher at the London stores than they are in the United States;
comparing prices in the London stores to similar items on the American website,
we estimated an average premium of 92% versus US prices. However,
customers did not seem deterred by the high prices; traffic was strong and there
was no visible clearance or promotions at Abercrombie & Fitch or Hollister (there was limited
clearance at the Gilly Hicks store). This premium has grown versus our store
checks in the Spring and last Fall.
