Abercrombie's Problems Have Nothing to Do With the Moose

Abercrombie & Fitch CEO Michael Jeffries finally stepped down this week. (Their stock price jumped 8% in a sigh of relief.) Sadly, his departure may not have happened soon enough to save the brand from peril. I’m not privy to the discussions the board of directors must have convened concerning his recent performance at the helm, and the accompanying organizational decline. However, it was time. Once brilliant in the role — reinventing the century-old company — he needed to go. As CEO, he hadn't responded to the recent changes in the retail environment that were all around him.

In a bid to move out of the 00's, Abercrombie had already made the decision to lose its logo (at least in the US). But the waterfall of issues, really have nothing to do with the moose. Losing the logo seemed drastic — and could be viewed as an unhealthy sign they were distancing themselves from their own built brand. By and large this was, and is, about organizational leadership and the inability to shake off the old to move forward effectively. Why did Jeffries remain in the CEO role, when the brand has been mired in turmoil for years? Why didn’t the company act much, much sooner? From the issue concerning sizes offered in stores, to brand expansion missteps (Gilly Hicks, Reuhl), Jeffries' behavior was viewed by stakeholders as increasingly problematic.

Ultimately, with every brand meltdown there are lessons from which we all can benefit. (Of course, we'll watch closely, with the hope that A & F recovers.) Most of these lessons are classic — yet, we still manage to ignore them.

These come to mind:

• The only constant is change. What works for your brand today will likely not work 5 or 10 years from now. So adjust your sight-lines to become increasingly open. Kids grow up. The world changes. Your brand must keep pace with your customers' evolution.
• The customer is king (and they are really, really smart). Growing brands such as H & M and Zara are kicking companies like Abercrombie out of the ring. Why? Customers know great style, good value (a problem for Abercrombie of late) and a questionable advertising campaign when they see it. Count on customers to figure things out.
• Groupthink still exists. Unfortunately, like many other once successful organizations, Abercrombie became complacent. Just like Narcissus, if you admire your own reflection for too long, you are headed for a downfall.
• It’s really, really hard to play catch up. Just ask J.C. Penney, another 100-year-old retail chain that has faced critical leadership challenges in attempt to rekindle a relationship with customers. If you remain "still" long enough, the rest of the world, might indeed pass you by.

What is your take on the brand? What should be their next move? Do you think they should promote from within or look to an external candidate?

Dr. Marla Gottschalk is an Industrial/Organizational Psychologist. She is the Director of Thought Leadership at Kilberry Leadership Advisors, Toronto/New York.