Casual apparel retailers like Aeropostale , who earn a major portion of their revenues from basic-logo merchandise, have suffered terribly at the hands of fast-fashion companies. A lack of comparable innovation and diversity in products has driven Aeropostale’s customers to other retailers in the industry, leaving the company in tatters. Even buyers seeking basic merchandise have shifted their interest from specialty brands to private labels at general merchandise retailers, further adding to Aeropostale’s problems. Due to a significant decline in the number of customers and an increase in traffic driving promotional activities, Aeropostale’s comparable sales have come down substantially over the past four years.
|