American Eagle Outfitters is a multichannel retailer with three brands - American Eagle, Aerie, and 77kids. It has over 900 retail outlets in the US and Canada and each brand has its own website. American Eagle has been successful by offering frequent discounts, free shipping, and hassle-free returns. It has also embraced mobile technologies and applications to increase online sales and convenience. While not a luxury brand, American Eagle provides good quality clothing at affordable prices that appeal to its target market of young adults.

1. AMERICAN EAGLE
OUTFITTERS
MULTICHANNEL RETAILER
Madeline Osman
Summer 2012

2. WHY AE IS MULTICHANNEL
THREE BRANDS :
American Eagle
Aerie
77kids
RETAIL OUTLETS – 900+ in US &
Canada
INTERNET SALES – website for each
brand

3. SUCCESS STORY
FR EQU EN T D ISC OU N TS
Most recently, 40% off for Memorial Day
Similar discounts for many major holiday
shopping events
Loyalty program gives %-off coupons monthly
FREE SHIPPIN G OFFER S
Cuts dissonance for online shopping
H ASSLE -FR EE R ETUR NS
Online order doesn’t fit? Exchange or return in-
store

4. INTERNET SALES
C ON VEN IEN T
Save checkout information
Mobile shopping application
BR OAD ASSORTMEN T
All sizes and products sold in-store
“Internet exclusive” items
AD D ITION AL IN FOR MATION
Customer reviews of products and sizing
information
Seasonal look books for new merchandise

5. STORE CHANNEL
TOU C H & FEEL, R ISK R ED U C TION ,
and IMMEDIATE GR ATIFIC ATION
Ability to feel and try on clothes before purchase
PER SON AL SERVIC E
Sales associates help find sizes
Help find products
EN TERTAIN MEN T & SOC IA L
EXPER IEN C E
Frequented by groups, not individuals
Current music played over store speakers

6. ECONOMIC ENVIRONMENT
American Eagle is not a
luxury brand
But it’s target market is
young adults, who don’t
have a large disposable
income, anyway
American Eagle has
embraced the mobile
future
iPhone applications for
each brand that allow easy
online ordering
http://www.marketwatch.com/story/top-brands-thrive-despite-economy-according-to-millward-
browns-latest-brandztm-top-100-most-valuable-global-brands-study-2012-05-21-2018300

7. TECHNOLOGY ENVIRONMENT
GOOD QUALITY, LOW PRICE
Compared to:
Low quality, low price – Forever 21
High quality, high price – Abercrombie & Fitch
AE quality affordable for everyone
Previously mentioned iPhone applications
use smart technology to increase sales
http://www.wired.com/reviews/2012/05/huawei-mercury/

8. SOCIAL ENVIRONMENT
AMERICAN EAGLE <3’s
COUPONING
Discounts appeal to price-conscious families
AE makes discounts fun
Discounts are frequent and reliable
http://www.virtual-strategy.com/2012/05/16/who-are-you-calling-cheap-
saveeverydaycom-announces-top-ten-most-frugal-cities

9. REGULATORY ENVIRONMENT
SALES TAX? SCHMALES TAX.
American Eagle already applies a sales tax
in-store and online
Regulations pushing a sales tax have little
affect on AE
http://thehill.com/blogs/on-the-money/domestic-taxes/228841-
retailers-rev-up-campaign-for-online-sales-tax