The new concept will be called P.S. from Aeropostale, and will target 7- to 12-year-olds -- the kids its teen-oriented core concept doesn’t reach.
It’s a bit of a gamble, of course, when so many retailers are actually closing nascent concepts, not opening them. Abercrombie & Fitch
Meanwhile, I admit, I called Gap
Aeropostale's outperformance may very well mean this is a great time to launch its competitive strike. Its P.S. concept could grab market share from Abercrombie & Fitch’s abercrombie chain for kids, or from J. Crew’s
And of course, such a concept will also compete with the likes of Wal-Mart Stores
We’ll see if Aeropostale can turn P.S. into a pint-sized powerhouse of sales. However, it seems to me that shareholders can feel pretty good about Aeropostale’s competitive position at the moment (not to mention the fact that it’s a debt-free retailer, which gives it a lot of freedom). It’s strong enough to make an aggressive competitive strike against rivals, and that’s an enviable position to be in these days in the retail landscape.
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