A couple of months ago, I said that Aeropostale was probably going out of business. The brand recently declared bankruptcy, had sales offering up to 75% off their products with a very small selection, and did not release any new collections for fall and winter. The brand has, however, finally released new products for Spring and Summer.
Aeropostale filed for chapter 11 bankruptcy last year in May and said it would close 154 stores. Then the brand was purchased by a retail group led by Simon Property Group Inc. and General Growth Properties Inc. for $243.3 million. The brand was reportedly purchased with a plan to keep at least 229 stores open. That is a much lower amount than the 646 that would’ve remained open if only 154 stores were closed.
Aeropostale then began liquidating its inventory. The brand has been offering up to 70% off in stores that are closing and began offering those discounts to online. The brand offered the discount during the week of Thanksgiving, on Black Friday, and Cyber Monday. The sale continued well after that and the brand’s began offering up to 75% off before and during Christmas.
What’s more, all sales in closing stores are final. When you shop at a store that’s closing, the cashier will put a stamp on the receipt that says “final sale”. The brand started making the products it was offering online final sale as well. So if you bought anything from the brand in stores or online, you couldn’t return it.
The brand’s inventory also began declining as well. It seemed the brand was only manufacturing and selling a small selection of clothing. Despite all the discounts, all sizes were available for most products and nothing was selling out. Then, only a few sizes for some products and even less items were available.The brand also didn’t offer any new products for fall and winter. Everything that was available all summer long was still on the website. The only in season items the brand had was a small selection of scarves and gloves.
Now, Aeropostale has finally released new products for spring and summer. The brand is now offering new t shirts, shorts, tank tops, and more. Many of the new items are still in the same styles the brand had before declaring bankruptcy. The brand also still has big logos on some products where more successful brands like H&M and Zara don’t.
Although new products are available, Aeropostale is still offering them on discount. Go to Aeropostale.com and click “new arrivals” in either men’s and women’s clothing and you’ll see new shirts that supposedly cost $22 discounted to $6. Shorts that cost $44 have been discounted to $22. That’s not something a brand would usually do with new products.
Aeropostale seems to be offering discounts to get people to buy their clothes. Much in the way department stores have been offering discounts to get people to shop in store rather than online. Regardless, the brand is releasing new products, which is better than offering the same items all year.
As for if the brand will become popular again like H&M and Zara, we’ll have to wait and see. Given the brand’s new products in styles similarly to last year’s, large logos, and discounts on new products, the brand might still be going out of business.
So, what do you think? Is Aeropostale going out of business? Let me know in the comments below. Also, don’t forget to subscribe to get new posts sent directly to your inbox and follow me on Facebook, Instagram, and Snapchat.
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