People and Organizations That Steel Our Heart

American Eagle Outfitters- Pittsburgh

American Eagle Outfitters is a relatively new business among several other established, successful retailers. Nevertheless, their profits have continued to significantly rise as their business practices are continuously refined and adjusted to maintain an edge in a competitive market.

Even though other retailers like Hollister, Old Navy and Aeropostale sell similar clothes and market to the same demographic – basically, 18 to 25 years old – Pittsburgh-based American Eagle Outfitters, or AE for short, has focused on something their competitors can’t imitate: their work culture. “Live your life. Love your job” is their recruiting slogan, and sums up the healthy work/life balance the company offers its staff. AE as we know it has only been in operation since the early 1990s, and has made many commendable strides in creating a place for themselves in a fast-paced retailing market.

American Eagle Outfitters embraces the fundamental aspects of a VEO, or Vibrant Entrepreneurial Organization, a term coined by Dr. Joanne G. Sujansky, founder and CEO of KEYGroup. The company continues to be innovative in a market that is known for close competition. They are in business for their employees – trust, loyalty, accountability, and passion all combine to form a distinctive workplace culture. Although they target young adults, AE’s winning business practices provide an excellent framework with which to base any organization.

AE began in 1977 selling outdoor gear, but in 1992 reevaluated their business strategy. It was at that time they began selling their current products – clothing that can be described as casual, preppy, fun and relaxed all in one. They also sell fragrances, shoes, accessories, outerwear and swimwear for both men and women. Since the early 1990s, the company has grown so much that AE now has 833 stores throughout the United States and Puerto Rico, and 72 in Canada. The AE brand is so widespread that in 1999-2000, the then-popular teen drama Dawson’s Creek featured cast members wearing nothing but AE all season. Another remarkable achievement: AE boasts zerolong term debt, and their 2006 sales grew over 50 percent. That’s not bad for a company with several similar competitors and a fairly short business history!

The sound of flip flops throughout the AE stores reflects the company’s casual, easy going atmosphere. While employees are encouraged to wear the AE brand, they can wear what they want, which allows each individual the room for self-expression. AE is a company that strives for diversity, unique talents and eclectic personalities, because they believe the differences of their people combine to make the company stronger and more profitable. While the atmosphere might be casual, the drive to succeed is anything but. AE offers college training classes to help recent graduates prepare for careers in merchandising, design, and planning/allocation. They also host professional events and paid internships to help younger professionals get started in their careers.

AE also recently began a new clothing and sporting goods line aimed at consumers up to about 40 years old, and they say it puts style back into outdoors gear. Though it would seem AE has come full circle – again selling the products they began with in 1977 – their innovative vision is far-reaching. The future of this casual workplace looks bright. Perhaps the relaxed, fun atmosphere of work is a lesson employees of all ages and disciplines can benefit from learning.

www.ae.com. 2007. 17 March 2007.

Cheryl, Chick. “Unscrambling American Eagle Outfitters.”
            www.chickslayingnesteggs.com. 8 January 2001. 17 March 2007.

www.hoovers.com. 2007. 17 March 2007.

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