American Eagle takes pop-up shop approach

American Eagle is taking a new approach to retail as malls, which were their bread and butter, continue to struggle. The company is now looking at doing pop-up shops called AE Studio, with their first major one opening in Manhattan's Union Square. The store will open on November 10.

The shop will highlight AE's denim, which is a staple category for the brand.

“We’re the No. 2 jeans retailer in America, and our goal is to be No. 1,” said Chad Kessler, global brand president at American Eagle Outfitters, to Glossy. “The goal for AE Studio is to be a lab for us to see the customer reaction firsthand and learn about our new experience.”

Despite a tough retail climate for malls, American Eagle has seen positive growth. The brand's second quarter comparable sales rose 2 percent and revenue increased to 845 million dollars.

AE Studio will be far from your traditional pop-up shop. Instead, it will feature a denim customization station and even a laundry service for nearby NYU students. It will also sell NYU merchandise from their collegiate apparel brand Tailgate.

As millennial customers tend to favor experiences over just purchasing things, a pop-up shop with interactive components is a smart way to drive retail traffic. Things are looking promising for American Eagle's growth with this new approach.

photo: via American Eagle Facebook page