American Eagle Outfitters Looks to Grow Up

Everyone’s favorite retailer from their preteen years is now struggling hard to stay afloat, barely surviving an assault from other fast fashion names. In a last ditch effort to rebrand and stray away from the embroiled fast fashion market, American Eagle Outfitters is purchasing high-end menswear label Todd Snyder for $11 million USD in cash and stock. With an all-new outlook, the retailer will be trying to attract an older age group. The acquisition will also put Todd Snyder’s Tailgate brand, a vintage collegiate sportswear line, under the American Eagle umbrella.

Founded in 1977, the outdoors and leisure brand made its name by catering to teenagers and young adults alongside rivals such as Abercrombie & Fitch and Hollister. However, in the age of fast fashion, these brands couldn’t compete and American Eagle found itself slashing prices to challenge retailers such as Forever 21 and H&M. This strategy didn’t work, and sales slumped at least 10 percent in 2014. Now, with changed leadership, the brand will be distancing itself from the fast fashion wars and positioning its brand as a little more mature and less disposable.

The crown jewel of the Todd Snyder purchase is Tailgate, a brand which American Eagle plans to expand and develop rapidly. The retailer hopes to open at least 200 Tailgate stores at universities nationwide starting with Southeastern Conference and Big Ten colleges. Additionally, American Eagle will look to expand the Todd Snyder line starting with a flagship store in New York City. Mr. Snyder himself will stay on for his eponymous brand, as well as serving as an adviser to the American Eagle label, offering his upscale expertise and marketing knowledge in hopes of appealing to more than just teenagers.