The American Eagle is According to the company, it is significant to offer the high-quality products with affordable price and they are trying to be prevailing trends in their clothes for every customer. It is the reason why the prices of their products are higher than other competitor companies due to good quality of clothing, nevertheless, some of people or analyst say that it is overpriced. For their pricing the products there are a lot of factors that affect their price increase such as slow growth of the apparel market, intensive competition with competitors or competitive retailers and decrease of American Eagle’s market share. Additionally, it demonstrates that the prices of their products are over 10% below compared to the recent market price, even though they estimate $13.45 (Forbes 2012).
The assortment planning is the one the methods to maximize sales and profit by planning and selecting the company’s goods and products for a certain period of time. At American Eagle, the trendy and fashionable apparel and accessories such as denim jeans, button-down shirts and shorts are their major merchandise
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For their inventory planning, they have Inventory Planning department that analyzes the consumers’ needs and wants, and regulate appropriate merchandise to their stores depending on the location. Furthermore, these employees are responsible to interpret and investigate inventory with sales reports for making the best decision for their business. For instance, the company conducts the rotational training program for the development of merchandise and inventory planning to employees for 16 weeks, which can be the opportunity for them to learn every part of their business with job training (VelvetJobs