Running Head: MGT 422 AEO vs. A&F
MGT 422 American Eagle Outfitters vs. Abercrombie Fitch
Jillian Sturdevant
Baker College
INTRODUCTION
Fashion may be defined as a way of living, decorating, etc., which is popular today, but
will soon lose their popularity. It is something passing and temporary, a simple craze of the
moment to be looked down upon with dislike. For example, tight pants are the fashion
today, but only a short while ago broad loose pants were the order of the day. If today a
man appears in society wearing broad pants, he would be held up to ridicule, but only a
few years ago they were the height of fashion, symbols of good taste and culture.
American Eagle Outfitters (AEO) and Abercrombie & Fitch (A&F) are two companies that
play a major role in the clothing industry. The following discussion with compare and
contrast the competitive advantages of the supply chain of the two companies.
COMPANY HISTORY
AEO
American Eagle Outfitters, Inc., a billion dollar corporation, is ranked as one of the largest
retail chains in America. With their central corporate headquarters in Pittsburg,
Pennsylvania, and two other corporate facilities located in New York City and Tokyo,
Japan, American Eagle, Inc. operates numerous mainline stores, factory stores, franchised
stores, and distribution centers across the country and the globe.
In 1977, brothers, Jerry and Mark Silverman, who owned and operated Silverman’s
Menswear, a Retail Ventures, Inc. company, founded American Eagle Outfitters. Opening
their first store in Novi, Michigan at Twelve Oaks Mall, the Silverman brothers were
hoping to diversify their menswear line (AEO Management Co., 2013). Several stores
were opened up and a catalog was created. American Eagle Outfitters continued to grow
into 1990, when Jacob Price took over which led to the introduction of casual,
private-label merchandise for men and women. In 1994, American Eagle Outfitters became
part of the NASDAQ stock exchange, which enabled the opening of 90 stores the
following year (AEO Management Co., 2013). In 1996, new executives joined AEO and
decided to modify the target demographics of the target market and reach more women, as
well as focus on those who were between the ages of 18 and 32.
Shortly after, American Eagle expanded to e-commerce with ae.com. By 2000, American
Eagle operated 500 stores and revenues for the company quintupled to $1 billion. The
Canadian market was penetrated in 2001 and in 2003 American Eagle expanded to Hawaii.
