Organizational CrisisBrianna Booker

4 reasons why Aeropostale lost its cool

1.TEENS DON'T WANT TO LOOK LIKE EACH OTHER2.AEROPOSTALE COULDN'T WEAN SHOPPERS OFF

PROMOTIONS3.THE CHANGING MALL4. INTENSE COMPETITION

Aeropostale

• Aeropostale has been down in sales for several quarters but has continued to maintain their same practices

• Instead of reinventing their brand and marketing tactics, they have remained the same for more than 6 years.

Pre-Crisis

• Five straight years of annual sales declines • Three years of annual losses• Stocks were being traded for 15 cents• Inability to keep up with fashion trends

Crisis

•Aeropostale Files for Bankruptcy

Crisis

• It was announced that Aeropostale would close 154 stores (113 in the U.S. and 41 in Canada)

The Complexity of Organizational

Change

• In the beginning stages, Aeropostale benefited following the recession due to their sales an promotions

Start up Stage:

The Complexity of Organizational

Change

• There was little to no competition and their annual sales were increasing The Growth Phase:

The Complexity of Organizational

Change• Customers choosing to shop with

competitors • Continuous Decline in SalesDecay Stage:

Reference Slide

http://www.cnbc.com/2016/05/05/4-reasons-why-aeropostale-lost-its-cool.html

Questions

1. What do you plan on doing differently in your Marketing practices?2. How do you plan on keeping up with competitors like Forever21?

3. What factors had an impact on the changes prior to filing for bankruptcy?

4. Where can you see the Aeropostale’s brand in the next couple of years?