Abercrombie & Fitch CEO Fran Horowitz said in an interview with CNBC that smaller stores are the future.
Abercrombie will do 85 store redesigns in 2019, including some for its Hollister brand, after doing 70 in 2018.
This entails the apparel retailer either closing a bigger store in a mall and opening a smaller one nearby, chopping up a bigger store to take up less square footage, or opening up a small-format location in an entirely new market.
As a result, Abercrombie will end 2019 with more stores than the company had in 2018, but less square footage overall, which is the retailer’s ultimate goal, Horowitz said.
The CEO said these smaller and remodeled locations are still bringing in the same sales if not better than the larger stores.