American Eagle Vs. Hollister: Which Store Is Better?

• American Eagle Outfitters has done well in the young adult sector. It reported a 6% increase in same-store sales for the first quarter of 2019.
• Abercrombie & Fitch — which also owns Hollister and Abercrombie Kids — is closing several of its flagship stores in 2019. But the company has plans to also open 40 new stores across brands by the end of the year and invest in new experiences in 85 stores. It reported a 1% increase in same-store sales for the first quarter. 
• We visited the soon-to-close Hollister flagship store in New York and the American Eagle store across the street. We saw why American Eagle's strategy might be leading to stronger results.
• Visit Business Insider's homepage for more stories.

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When it comes to store design, American Eagle Outfitters and Hollister seem to have very little in common.

The dimly lit presentation in Hollister looks nothing like the light, summery showrooms in American Eagle. When juxtaposed, these stores are like night and day — quite literally — and you can see the impact in sales numbers. 

American Eagle's sales have soared in recent years. Much of that success is owed to Aerie, its undergarments brand, which has become a key competitor for Victoria's Secret. American Eagle reported a 6% increase in same-store sales for the first quarter of 2019, with a 14% same-store sales increase for Aerie alone. 

The same can't be said for Abercrombie & Fitch, which also owns Hollister and Abercrombie Kids. The company announced in March that it would be closing 40 stores in the 2019 fiscal year. It also has plans to open 40 new stores across brands by the end of the year and to invest in new experiences in 85 stores. It reported a 1% increase in same-store sales for the first quarter. 

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Read more: We shopped at American Eagle and Urban Outfitters to see why one teen retailer is outperforming the other. The answer was clear.

We went shopping at American Eagle and Hollister and saw the difference for ourselves. With Abercrombie making the move to smaller stores, it might do well to take a cue from American Eagle. 

Here was our experience:

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