American Eagle Outfitters recently acquired logistics startup AirTerra, a startup cofounded by a former e-commerce logistics authority at Walmart and Nordstrom.
AirTerra combines packages from several senders to negotiate better prices and designs efficient shipping routes to “level the playing field for small and mid-size shippers.”
The new company, which just began shipping packages last week, will help operate independently and further American Eagle’s goals of opening smaller distribution centers and increasing efficiency. In June, the company said it cut 1.5 days off its average shipping time.
The acquisition is a rare move for companies in the retail industry which generally outsources logistics. Another exception is Target, which bought Ship for $550M in 2017.