The Covid-19 pandemic hit American Eagle Outfitters hard. At first, people had little interest in buying the latest fashion items while they were isolated indoors. What shopping they did do happened online, which meant retailers were even more dependent than usual on distribution channels they did not control. Then came delivery snags and price increases by distributors, as households spent record amounts on goods in response to the pandemic and government stimulus.
How American Eagle Reinvented Its Fulfillment Strategy
The company realized that controlling its future meant controlling its supply chain.
November 07, 2022
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Summary.
Faced with pandemic-related disruptions and increasing competition from Amazon, American Eagle decided it needed to take control of its e-commerce delivery. That led to two acquisitions and a new strategic question: Should the delivery companies it acquired still serve other customers, including if they were American Eagle competitors? Ultimately, the company decided that it should, opting in effect to share its supply chain with other retailers in a bid to compete with Amazon.