Legacy mall apparel retailers are hoping for a comeback in 2025
Apparel brands that were popular two decades ago are readying for a comeback in 2025.
Already, Abercrombie & Fitch — once known as a preppy mall brand — is reaping the rewards of changes it’s made over the past few years, including releasing modern styles, adding inclusive sizing and working with more influencers. In November 2024, the company reported record third-quarter net sales of $1.2 billion, up 14% from a year before. Now, more brands are joining its ranks in terms of performance.
Gap Inc. — once synonymous with hoodie sweatshirts and khakis — raised its full-year outlook for its fiscal 2024 year, while Anthropologie — a hub for all things “boho chic” — is seeing visits to its stores soar over pre-pandemic levels, according to data from Placer.ai. Meanwhile, jeans giant Levi Strauss & Co. said its third-quarter net income was $21 million, a 110% increase from a year prior.
There are a few reasons why these legacy brands are enjoying a resurgence. For one, millennials have shown increased interest in Y2K-era styles, driving them to seek out brands of their youth. What’s more, data from the ICSC indicates that Gen Z shoppers prefer to shop in person, and legacy brands are adding events and experiences like workout classes and customization workshops to draw them in. Many of these brands are also investing heavily in omnichannel tools, like gamified apps and buy online, pickup in store, which help increase engagement.
“[Omnichannel] is providing an opportunity for some of the legacy retailers to reinvent themselves, add digital maturity, but maintain some of the core brand experiences that they’ve had and do well [in] and bring them back,” Kassi Socha, director analyst at Gartner, told Modern Retail.
Many legacy apparel brands are making changes in stores and online. Athleta, one of Gap Inc.’s brands, recently refreshed the product imagery on its website to make it more modern. Every month throughout 2024, it also held limited-edition product drops on its website and in its most popular stores. Meanwhile, in September 2024, Levi’s rolled out a new mobile app called BackPocket for its in-store stylists to provide shoppers with personalized recommendations and fashion advice.
Still, these omnichannel updates won’t make a difference if the brands’ merchandise isn’t alluring, said Beth Ann Kaminkow, global chief commerce officer at the marketing agency VML. “The product, the design, the quality — all of those things are essential,” she explained.
Socha echoed this, remarking that brands not only need “great brand awareness” but also “an updated merchandising strategy that meets the consumer needs of today.”
To that point, legacy apparel brands are making updates to their assortments. Athleta is increasingly focusing on sets like sports bras and leggings. True Religion — a popular early aughts jeans brand that’s now increasingly focused on streetwear — is stepping up its jewelry business as it looks beyond jeans. It’s also continuing to build its women’s section, which once represented the majority of the company’s business and now sits at about 40% of in-store and online revenue.
To better highlight these products, legacy apparel brands are teaming up with Gen Z-friendly collaborators and influencers. Gap, for instance, recently worked with singer Troye Sivan in a campaign that “open[ed] the door to a new generation,” CEO Richard Dickson said in a November earnings call. In October, True Religion teamed up with rapper Megan Thee Stallion on a holiday campaign. Abercrombie & Fitch has built up a large network of creators to provide style tips and tricks and explain their interest in the brand.
The leadership of these legacy apparel brands is changing too, an effort by their boards to freshen things up. Gap, for instance, brought on two new executives in 2023: Dickson and Athleta CEO Chris Blakeslee. In July 2023, True Religion named its first-ever chief marketing officer, Kristen D’Arcy. After a decade at Kohl’s, Michelle Gass became the president of Levi in 2023 and then its CEO in 2024.
“There is movement across the industry from a leadership perspective… to carry brands into a future fit state,” Gartner’s Socha said.
Malls, where many of these brands have stores, are also enjoying a resurgence. Many have adjusted their tenant mix to cater to younger shoppers. In 2024, real estate investment trust Simon Property Group looked to woo Gen Z with a marketing campaign titled “Meet Me @themall.”
Outside of malls, for young people, “there aren’t many places that you can go just to be social… to feel your sense of independence,” said Kaminkow, who served as the global chief marketing officer for Westfield from 2014 to 2016. “Those fundamentals are not being replaced by anything online and aren’t changing.”