American Eagle Outfitters (AEO) is adding Quiet Logistics to its portfolio, reports Yahoo Finance. The retailer has agreed to purchase the logistics firm for $350 million in cash, building upon its acquisition of logistics firm AirTerra earlier in the year as it continues to enhance its supply chain capabilities.
Quiet Logistics has locations in Los Angeles, Dallas, St. Louis, Mo., and Jacksonville, Fla., that provide same-day and next-day delivery options to consumers and stores alike. The company will be a wholly owned subsidiary of AEO and will continue to run its business independently.
Total Retail's Take: The supply chain race is hitting full speed. Like AEO, several retailers have taken unusual measures in recent months to ensure products reach consumers for the holiday season. For example, Costco and The Home Depot have both rented their own container ships to prevent delays and control costs. Furthermore, The Home Depot also recently became the first retailer to announce it was using Walmart's new delivery business, GoLocal, to deliver products to consumers' homes.
AEO's decision to purchase another logistics firm is likely to help ensure the business won't run into nearly as many shipping snags as other brands that are filling orders through mass market fulfillment companies. Jay Schottenstein, American Eagle Outfitters’ executive chairman and CEO, believes this move is an important pillar of the brand's strategy to transform its supply chain. "Our vision is to create an on-demand, hyperscaled operations platform that enables brand success."
AEO was also considering the business opportunities this acquisition would bring in servicing order fulfillment for other companies. "As we continue to expand these services to other brands and retailers, we believe the business will scale, generating incremental value for our shareholders,” Schottenstein commented. This move certainly puts AEO in a better position to weather the coming shipping storm this holiday season.
Kristina Stidham is the digital content director at Women in Retail Leadership Circle and sister brand Total Retail. She is passionate about digital media and handles video, podcast and virtual event production for both brands. You can often find her at WIRLC, TR, or industry events with her camera and podcasting equipment recording interviews with retailers.
Kristina holds a B.A. in Media Studies and Production from the Temple University Klein College of Media and Communication in Philadelphia. Go Owls! When she's not in the office, she loves to go on long walks, sing around the house, hangout with her two pet guinea pigs, and travel to new places.