Hollister Co.

Abercrombie & Fitch brand
name = Hollister Co.


bgcolor = #C2B280
fgcolor = #
type = Subsidiary
establishment = July 2000http://library.corporate-ir.net/library/61/617/61701/items/282722/Monthly_Store_Count_History_0708.pdf]
headquarters = Abercrombie & Fitch Co.
6301 Fitch Path
New Albany, Ohio 43054
key people = Michael S. Jeffries, Chairman & CEO
apparel type = Casual Surfwear Apparel
initials = HCO
Seagull
theme = SoCal
color scheme = Sepia
areas served = Domestic:
USA
International:
CAN
store locations = 482 (May 2008)
website = [http://www.hollisterco.com/hol/homepage.html www.hollisterco.com]

Hollister Co., HCO, or simply Hollister, is an American lifestyle brand from parent brand and company Abercrombie & Fitch Co. inspired by the Southern California surfing lifestyle. [http://www.abercrombie.com/anf/hr/jobs/careers.html A&F Careers] ] Goods are available in-store and at hollisterco.com. [cite web|url=http://www.hollisterco.com.html|title=Hollister Co. Official Website|publisher=Abercrombie & Fitch, Inc.] [cite web|url=http://library.corporate-ir.net/library/61/617/61701/items//anf_.pdf|title=Four Iconic Brands, One Aspiration] A study by US Bancorp Piper Jaffray reveals that the brand has ranked 1st for four consecutive seasons as Teens' Top Clothing Brand since 2007.

History

Opening and effect

Hollister Co. opened its first store in July 2000 at the Easton Town Center in Columbus, Ohio. [cite web|url=http://www.fool.com/news/2000/anf.htm|title=Will a New Brand Lift Abercrombie?|publisher=Motley Fool] [cite web|url=http://www.bizjournals.com/columbus/stories/2000/07/24/daily25.html|title=Abercrombie & Fitch opens first Hollister Co. store|publisher=Columbus Business First] The concept was formulated around a fictional background story created by Mike Jeffries to provide more of an atmosphere for the HCO shopper. The fictional story states Hollister was founded by J.M. Hollister in 1922 as a pacific merchant shop in SoCal. All of Abercrombie & Fitch Co.'s spin-off brands have an accompanying fictional background (including RUEHL No.925 and Gilly Hicks). HCO's rapid success led Abercrombie & Fitch Co. to notice that the HCO brand was eating into the revenue of the Abercrombie & Fitch brand, referred to as a cannibalism effect. In order to properly distinguish A&F from HCO, higher-grade materials and construction were introduced strictly in the production of A&F clothing and goods, thus raising the prices of the latter.

A&F Vs. AE through "Club Cali"

Ever since its debut, Hollister Co.'s main competition has been against clothing brands American Eagle Outfitters (AE) and Aéropostale due to similarities in terms of attire and target consumers.In May 2002, Abercrombie & Fitch Co. officials sent a letter to AE accusing the company of using the number "22" on baseball caps and graphic T-shirts to confuse consumers into thinking they were purchasing HCO products. The lawsuit charged AE with trademark infringement and unfair competition, common law trade dress infringement, and deceptive trade practices. A&F Co. asked the court to cease AE's use of the number, and award compensatory and punitive damages. [cite web|url=http://www.post-gazette.com/pg/03238/.stm|title=Is there a catch in number 22? Clothing retailer says yes|publisher=Pittsburgh Post-Gazette]

By March 24, 2006, Hollister Co. discontinued its former rewards program, "Club Cali". The program involved a system wherein one point was awarded for every dollar spent, with points able to be traded for merchandise including but not limited to autographed CDs, surfboards and so on. The program also involved a system of cards, wherein a single card was awarded to each individual participant. The program began with the "Red Card" at the $0 USD through $500 USD level. Once a cardholder purchased beyond $500 USD of HCO merchandise, they received the "Gold Card", and once having purchased beyond $1,000 USD the card became "Platinum".

From international expansion to today

Abercrombie & Fitch Co. marked its expansion into Canada mid-January 2006: two Abercrombie & Fitch stores and two Hollister Co. stores opened, one of each pair at the Toronto Eaton Centre and the other at Sherway Gardens, both shopping malls located in Toronto, Ontario. The stores' openings were originally scheduled for the end of 2005, however construction and planning issues delayed this to early 2006. As of now, locations include: Sherway Gardens, Toronto Eaton Centre, the West Edmonton Mall in Edmonton, Alberta and Upper Canada Mall, in Newmarket, Ontario. The 5th Hollister Co. store will open at Fairview Mall in Toronto, Ontario.

Starting summer 2007, Abercrombie & Fitch Co. spent an approximate amount of $10 million USD to install video walls into Hollister Co. stores nationwide.HCO Today

Branding and marketing

Hollister Co. pursues the technique of "walking self-marketing", wherein wearing an item of clothing from HCO results in direct advertising. This is notably achieved through the large embroidery or screenprint of the brand's name, initials, fictional date of establishment and the flying seagull logo on the vast majority of their merchandise.The brand's marketing images are sepia toned and digitally edited in order to look somewhat faded; this is reminiscent of the grayscale marketing images used by the Abercrombie & Fitch brand. The sepia toned images provide HCO's campaigns with a vintage feel that is adequate to their fictional date of establishment, and the lifestyle promoted by the brand.

Clothing and goods

To maintain the SoCal theme, stores and merchandise are categorized within the divisions named "Dudes" (men) and "Bettys" (women). Merchandise of which offers Hollister includes but is not limited to "applique" and "heritage" T-shirts, Polos, Henleys, Knits, Shirts, Fleece, Outerwear, regular or destroyed low-rise Jeans, Flip Flops, Fragrances and so on. Hollister is the only brand from Abercrombie & Fitch to offer body care products such as deodorants, antiperspirants, and body washes for both sexes. Some of the beauty products offered for the girls are body washes, mists, lotions, and an assortment of lip glosses, lip shines and lip balms. All of these are part of the sessions line.

Goods are given names from SoCal beaches, something which Gilly Hicks does similarly with Australian beaches. The HCO flying sea gull is also prominently stamped and embroidered onto every product. The labels proclaim Hollister Co. as "pacific merchants" established in 1922.

A&F Corporate keeps HCO price points affordable to its targeted consumers: High-schoolers. Outerwear at its highest is at $138.00 [http://www.hollisterco.com/webapp/wcs/stores/servlet/category1_10251_10201_16400_-1_12551] U.S. Dollar, and jeans at their highest at $69.50 USD for both Dudes and Bettys.

tores

Design

Hollister Co. recreates the SoCal surf atmosphere through the interior and exterior design of their stores. The stores resemble beach shacks, complete with shuttered windows, light and dark brown walls and teal boardwalks on the exterior. The stores' interior is dimly lit with spotlights above the merchandise, and divided into on one side the Dudes section and on the other the Bettys section. HCO stores are currently scented with the signature "SoCal" fragrance. They spray room spray scented like a mix of the "SoCal" cologne directly on the clothes and mannequins. The merchandise itself is displayed on built-in shelves and dark wooden tables, cots, and benches. In the center of the store is a lounge area with chairs on which blankets are folded, and a dozen surf or general popular culture magazines are piled beside them along with potted palm trees. At the "cash wrap," or register area, CDs and magazines are made available for purchase.

Music

Hollister Co. stores are known to play indie rock and alternative music genres. The company policy is to play the music at the 80-85 decibel level. One investigation measured the level of sound at 90 decibels. OSHA requires employers to provide ear protection to employees exposed to decibel levels 90 or over. A store manager in a particular Hollister store stated that there were complaints from customers, but that the volume was mandated by corporate policy.Fact|date=April 2008 The music is set at a certain level to create a specific atmosphere that is unlike any other retail experience.cite web|url=http://www.abc15.com/content/news/investigators/story.aspx?content_id=48f63d86-3c42-4840-a951-add54ccb16c8 High Volume Sales|title=A hazard to your hearing?|publisher=Phoenix news, breaking news, local news, weather radar, traffic from ABC15 News, ABC15.com]

Future plans

tore expansion

Domestically, Abercrombie & Fitch Co. plans on opening a total of 67 domestic Hollister Co. stores by the end of 2008. Upcoming store locations include: 5th Avenue Mall, Anaheim GardenWalk, Bangor Mall, Bridgewater Commons, [ [http://www.bridgewatercommons.com/html/mallinfo.asp Bridgewater Commons About Us ] ] Brunswick Square Mall, [ [http://www.simon.com/mall/mall_info.aspx?ID=108 Simon Malls More Choices â€" Brunswick Square Gift Cards ] ] Broadway Mall, Cary Towne Center, Fashion Valley Mall, La Plaza Mall, Livingston Mall, [ [http://www.simon.com/mall/mall_info.aspx?ID=111 Simon Malls More Choices â€" Livingston Mall ® Gift Cards ] ] Mall of New Hampshire, Newport Centre Mall, [ [http://www.simon.com/MALL/mall_info.aspx?ID=114 Simon Malls More Choices â€" Newport Centre Gift Cards ] ] Pearland Town Center, Seminole Towne Center, Bonita Lakes Mall , Shoppingtown Mall, The Oaks, [ [http://www.shoptheoaksmall.com/directory.asp?new Oaks, The Store Directory ] ] and Weberstown Mall.

Internationally, expansion in Canada has continued with the opening of a fourth store on July 3, 2008 at Upper Canada Mall in Newmarket, Ontario.cite web|url=http://uppercanada.shopping.ca/cambridge/jsp/wh_wh.jsp?mallid=upp|title=Upper Canada Mall: What's New - Coming Soon!|publisher=Ivanhoe Cambridge|accessdate=2008-01-25] A fifth Hollister store is scheduled to open at Fairview Mall in Toronto in October 2008. [ [http://www.fairviewmall.ca/store/index.ch2 Fairview ] ] Abercrombie & Fitch Co. has expressed interest in opening four non-flagship Hollister Co. stores in the United Kingdom. Stores are already confirmed for Bluewater and Brent Cross with talks of more at West Quay Southampton, Meadowhall, Westfield London and potentially a flagship in London Covent Garden. [ [http://www.retail-week.com/News/2008/08/hollister_close_to_signing_for_its_next_three_units.html] ] HCO will be the second A&F Co. brand to open locations in the UK and enter the European market.

There have been rumors claiming the opening of a flagship store in Tokyo. Abercrombie and Fitch has been doing research on an "offsite" stock room location as property taxes are extremely high in Tokyo. Hollister in Roosevelt Field Mall, New York and now in Aventura Mall Fl are been used as testers by having an offsite location. Future development is still unknown.

Flagship store

Abercrombie & Fitch Co. has announced the opening of a Hollister Co. flagship store in New York City, New York by spring 2009. [http://phx.corporate-ir.net/phoenix.zhtml?c=61701&p=irol-newsArticle_print&ID=1045196&highlight= Abercrombie & Fitch Co. Announces the Opening of Hollister Flagship in New York City in Spring 2009, A&F Investors, NEW ALBANY, Ohio, Aug. 27, 2007 /PRNewswire-FirstCall/] ] The multi-leveled flagship will be located in the fashionable SoHo district on 600 Broadway at the southeast corner of Houston and Broadway. Thomas D. Lennox (Vice President of Corporate Communications, A&F Co.) stated that the company believes the flagship will be a "memorable" and "unique" experience to customers, as well as an important step for the brand.

Out of the total capital expenditures for fiscal 2008 of A&F Co. (up to $445 million USD), approximately $300 million USD will be spent on new store construction and remodeling, including the HCO flagship. [http://phx.corporate-ir.net/phoenix.zhtml?c=61701&p=irol-newsArticle_print&ID=1108745&highlight= Abercrombie & Fitch Co. - Investor Relations - News Release ] ]

This store will be the first HCO flagship and the first non-Abercrombie & Fitch flagship in A&F Co.'s history. The company anticipates opportunities for opening HCO flagships "on an international basis" in the near future.

Morris vs. Abercrombie & Fitch Co.

In 2007, the lawsuit "Morris vs. Abercrombie & Fitch Co." was settled. Abercrombie & Fitch Co. admitted that they should have not asked their California customers for personal identification information during credit card refund transactions. Customers who were asked this information during June 9, 2005 through May 31st, 2007 may be entitled to receive gift cards. [http://www.hollisterco.com/hol/ca_class_notice.pdf] Since the settlement, A&F Co. brands' stores have stopped asking for this information for returns on purchases for which a credit card had been used.

References