Web option enhances American Eagle's expansion effort

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A Web store that quietly opened for business in recent weeks represents the broadest move yet by Pittsburgh teen retailer American Eagle Outfitters to expand its experiment in clothing 28- to 40-year-olds. Until now, the brand's customers were mainly those living near its 20 shops around the country."We're inviting people in to experience Martin + Osa," said Michael Dupuis, senior director, marketing, whose team has been polishing e-commerce images and systems that will be many shoppers' first exposure to the brand.Investors and analysts have been debating just how long American Eagle should stick with this project, martinandosa.com. Since the first prototype store opened more than a year ago, officials have tinkered with styles, real estate and even leadership of the venture.Top management thinks changes are paying off. Susan McGalla, president and chief merchandising officer, told analysts on a recent earnings call the newest assortments fit better, use color better and generally offer more value for the price. In February, she said, more customers coming in were buying something."We think the product's right. It's getting better every season," said Fred Grover, executive vice president, e-commerce and AE International. Comments on some online message boards seem to indicate store customers agree.Yet Internet shoppers can't feel the cashmere or try on the pants made with cotton/linen blend. To convince virtual visitors to give an unfamiliar brand a chance, the company is offering them a prime perk: free shipping and returns.It's a smart move, even if it could initially be costly, said Tom Filandro, a specialty retail analyst at Susquehanna Financial Group. "This is a business about trial. You've got to get it in their hands."Only then, officials believe, will consumers begin to understand the brand's "refined casual" message and appreciate details meant to give Martin + Osa a reputation as a higher-quality clothier fussing over nuances such as better fabrics and well-constructed seams.If customers don't send it all back, officials will know they've solved some earlier issues with fit and style. "If your returns are low, you've got it," said Filandro.Such lessons can also be learned building a brand the old-fashioned way, one store at a time. That allows a certain amount of control over the experiment but limits customer awareness. Even in the company's hometown of Pittsburgh, there are no Martin + Osa stores.Perhaps more importantly, there are no stores in Manhattan where trend-setting fashion editors and writers congregate. The company's marketing strategy, now that the Web store is open, calls for hosting events in New York later this month to show off the brand's clothes to groups of fashion bloggers and magazine editors.Driving traffic to the site will also involve direct-mail and e-mail efforts as well as buying space on search-engine pages to reach Web users searching terms such as "cashmere."Shoppers who do visit the Martin + Osa site will find a place carefully crafted by teams at American Eagle's headquarters to subtly educate them on the brand as well as to be distinctly different from the company's namesake retail concept. Then there's the "shop by outfit" feature. A dark-haired model is seen posing and moving around in several different looks assembled from Martin + Osa styles. In one pose, she has on a shirt dress, long sleeve T-shirt, a braided leather belt and espadrilles. Another shows her in a more complicated outfit layering a shirt, sweater, anorak over jeans with a strappy sandal and a silver tote bag.Fine-tuning the Martin + Osa presentation has involved more than just Web-page design. The distribution center in Kansas has worked out details of wrapping the clothes in tissue paper and packing them in special boxes. A photo studio at the headquarters put together detail shots to give shoppers tight views of fabrics, pockets and other hard-to-see elements.Filandro doesn't see top American Eagle management letting the project linger too long if it doesn't become productive, but he noted the company still believes there is an underserved customer who will respond if the concept is done right. The company has announced plans to open 13 more Martin + Osa stores this year."You can utilize online to figure out what product sells best," said Filandro. Internet results also help identify markets where traditional stores might find customers. In hindsight, he said, going online first might have been a good strategy for Martin + Osa, too.(E-mail Teresa F. Lindeman at tlindeman(at)post-gazette.com.)(Distributed by Scripps Howard News Service, www.scrippsnews.com.)