It seems even the biggest clothes stores are feeling the recessional pinch as Abercrombie and Fitch becomes the latest brand name to admit to finding the times tough.
The worldwide American fashion store has been faced with drooping sales and have said that a weak European economy is putting the brakes on their expansion plans.
The company have announced that they have decided to pause on some expansion ideas that they had for new stores worldwide.
The store, which was established in 1832, has annual sales of $3,749,847,000, that’s over €3 billion.
This news comes as the multi-million euro brand is set to open its first Irish store in Dublin before Christmas 2012.
The American company has previously caused controversy over its half-naked fashion models.
The company is expected to hire up to 300 staff for the new premises, which is situated over 3 storeys of the impressive former Habitat building on College Green. The US store is famous for choosing building with spectacular structural detail and the former bank building has just that.
It is understood the store has signed a 10-year lease at around €750,000 a year.
However, the recent news has reported that A&F said store sales fell 10% overall for the second quarter of this year. US store sales have declined 5%. Worldwide sales were weakest in June.
A&F said it will slow its epansion by opening 30 Hollister stores, instead of the 40 previously expected, and put commitments to new flagship stores on hold, except for one in Shanghai, China.
