Betting Big on the Philippines, Abercrombie & Fitch Opens First Store in Manila

One hundred and thirty-four years since it was founded, Abercrombie & Fitch has finally landed in the Philippines.

The American casual apparel brand, which gained peak popularity in the 1990s for its risqué advertising featuring young models in various stages of undress, opened its first store in Manila at the SM Mall of Asia in its continued push to expand in Asia Pacific. The occasion is significant as many other global fashion retailers have begun downsizing or have outright closed in recent years in the face of shifting consumer behavior.

“I think the brand’s been missing the Philippines all these years,” said Steven Sare, Abercrombie & Fitch’s managing director for Asia Pacific during a group interview on the sidelines of the store’s official opening in the last week of May.  “It feels like it took us a long time to arrive, but we arrive enthusiastically, and at the right time for our company.”

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That “right time” is backed by strong global performance. Abercrombie & Fitch has staged one of the more notable turnarounds in fashion retail, growing from $3.6 billion in annual sales to approximately $5.3 billion in just six years. Parent company Abercrombie & Fitch Co. also reported sales of $46.5 million in the Asia-Pacific region in its fiscal first quarter, which is a 24 percent increase from the previous year. It is the fastest-growing region for the group.

The impressive numbers stand in stark contrast to an industry still grappling with post-pandemic disruptions, rising costs, and the continued shift toward e-commerce. Globally, legacy apparel brands have struggled  to compete against fast fashion rivals, digital-native labels, and changing consumer priorities. According to estimates, over 4,100 retail stores, including fashion players, closed in the U.S. in 2025 alone, while closures exceeded 15,000 stores over the past year globally.  

In Southeast Asia, however, physical retail—particularly mall-based shopping—has shown resilience. The Philippines, in particular, stands out, with mall traffic rebounding strongly since 2022, and consumer spending on fashion has steadily recovered, driven by a young, brand-conscious population and a deep cultural affinity for Western labels. Between 2020 and 2024, compounded annual growth rate (CAGR) of consumer spending on apparel grew 12.5 percent, with the market projected to grow to $15.9 billion by 2034.

As of the first quarter of 2026, Abercrombie & Fitch Co. operates approximately 830 stores globally across its family of brands, which include Abercrombie & Fitch, abercrombie kids, and Hollister. Incidentally, a standalone Hollister store is set to also open at the Mall of Asia this month.

Sare says it makes sense that the brand has finally opened in the Philippines. “Every time I come here, it feels so much like America,” Sare said. “People have a real connection to American brands, and the malls are incredibly vibrant. For someone like me who started in stores, that energy is exciting.”

Sare said that the Philippine entry is part of Abercrombie & Fitch’s broader push beyond its core markets in the United States, China, Japan, and Hong Kong. The company recently partnered with regional retail giant MAP (PT Mitra Adiperkasa Tbk) to accelerate expansion across Southeast Asia, including Indonesia and the Philippines.

Rather than adopting a one-size-fits-all approach, the brand is tailoring its product mix to local preferences. Sare describes the strategy as selecting from a “whole closet” of global designs, with regional teams refining assortments to match climate, culture, and consumer behavior.

“This is one of our first truly tropical markets,” he noted. “We’re learning quickly what works and what needs to evolve. But Filipino customers should feel like the assortment fits their lifestyle.”

Despite the rise of online shopping, Sare remains emphatic about the role of brick-and-mortar stores. “Retail stores will continue to be the heart and soul of any brand,” he said. “We put a lot of effort into fabrics and finishes—you really have to touch and feel them. That experience can’t be replaced.”

Asked if there were plans to open more branches soon, executives said they’re already in discussions with major Philippine mall operators, including SM and Ayala, for further expansion across Metro Manila. Sare noted that accessibility is key in a market where traffic can turn short distances into hour-long journeys.

Abercrombie & Fitch’s resurgence also comes as it continues to reinvent its image. The brand was once known for being exclusionary and its hypersexualized depiction of its models in its advertising campaign. A 2022 documentary on Netflix called White Hot: The Rise and Fall of Abercrombie & Fitch traced the beginnings of the brand through to its phenomenal rise in the 1990s, allegedly on the back of exclusionary marketing tactics. However, the brand has spent over a decade reshaping its identity into one now centered on inclusivity, comfort, and personal confidence.

“We’re a totally different company today,” Sare said. “We want customers to feel like they can find something that makes them feel great about themselves, whoever they are.”

Asked about what specific strategies the company employs to rise above the so-called “retail-pocalypse,” Sare mentioned the internal pivot as well as what he said was their “hyper-focus on customer feedback—from immersive brand sessions to in-store “shop-alongs,” which he calls the company’s “superpower.”

“Our business is probably the most thriving of all of the…even Western-based retailers today,” Sare said. “Someone's onna hate me for that comment, but I think it really comes back to putting the customer at the center. Our CEO Fran (Horowitz) is so passionate that…whenever we have problems, and (there’s) a bunch of executives sitting in a beautiful corporate office talking about a problem, she's like, ‘Please go out and talk to customers, please go and figure out what they think about this or that.

“Also, I think, the other superpower of the company is that the way we design, develop, and then buy our inventories is very fluid and very close to market, so we have a lot of chase that we do.”