Hollister announced some big marketing plans for the summer in a bid to rejuvenate its domestic business, which has been in decline.
Parent company Abercrombie & Fitch said Hollister will open a beach house in Southern California from Memorial Day to Labor Day that will feature live musical performances, a jeans lounge, a “So Cal Stylist” video series and celebrity appearances.
All of it will be chronicled on the retailer’s social media channels. (Click here for a link to the video Hollister created about the House of Hollister.)
Hollister has also created a Hollister House Collection that will arrive in stores in mid-May and include summer essentials.
The company did not disclose where the house is in Southern California.
Hollister is the surf-themed, mall-based industry competitor based in Ohio that has managed to define the lifestyle for a whole swath of mainstream customers both domestically and abroad, much to the consternation of the industry.
In 2013 Hollister logged sales of $2.1 billion and ended the year with 587 stores. Its same-store sales, considered a key measure of a retailer’s health, declined 14% for the year.
While Hollister has embarked on an aggressive – and successful – international expansion of the past few years, its domestic business has suffered since the financial crisis of 2008.
Typically, Hollister does not do much marketing, relying on its showcase stores to push its marketing message to shoppers: “Hollister brings Southern California to the world.”
However, in an attempt to reverse the decline in the U.S., Abercrombie has embarked on a major restructuring and reorganization of its business.
Goals include lowering prices and increasing fashion and speed-to-market at Hollister, particularly in junior’s.
Abercrombie plans to spend an additional $30 million in marketing this year on its Hollister and Abercrombie chains.
For the Hollister house, the company has created a new Snapchat account and blog called, “This is So Cal.”
Previously, CEO Mike Jeffries had discussed the new marketing push for Hollister, saying “We are committing a significant spend toward the campaign.” He also said the company is approaching its new marketing initiatives “aggressively.”
