In our last entry Allison talked about some of the cool features on American Eagle Outfitters’ Web site, particularly the new 77E entertainment destination that blends social networking with music and video. We always like to keep an eye on what AEO is up to, since they’ve been a pretty cutting edge brand when it comes to e-commerce. So after working through a few blog glitches over the past week (and moving to a new hosting service and the newest WordPress version) we’re happy to bring an update today, acknowledging AEO’s newest move.

Recently, American Eagle Outfitters launched a brand new retail concept called 77kids by american eagle. While some see this as an especially bold move given the current economic state, we think it’s great they chose to introduce a new online-only line. Not only does it demonstrate confidence on AEO’s part, but it also clearly demonstrates they know what their customers want – both moms and kids – and they respond accordingly. Moms want to buy their kids clothes that last…and since they might be tempted to hang onto their cash a little more closely over the next few months, it’s a smart move to offer an apparel line whose major selling point is its guarantee to endure 77 washes without breaking apart. Consumers are already more apt to head online than jump in a car to go shopping, since they save time and gas and can readily sift through dozens of options looking for what they want at just the right price. It doesn’t hurt that 77kids.com is offering free shipping and returns, either.

Of course, AEO didn’t shy away from incorporating interesting and unique social shopping features on this portion of their Web store, either. Taking a page from the success of their primary teen brand site, 77kids.com offers functions like the ability to send e-gift cards and there are already promotions for a Web-exclusive Jonas Brothers concert. What better way to win over both kids and moms than by providing free entertainment from a hugely popular, family-friendly band? Visitors can even add a quick Jonas Brothers video clip to their Facebook pages simply by clicking on a “share” button.

We’ve said it before, we’ll say it again: despite the down economy, there are opportunities to beat the competition by maintaining a serious, creative strategy when it comes to the Web. If everyone’s competing for fewer dollars…the sites with the best overall experiences are the ones that will earn customers. So from everyone at ATG – kudos to American Eagle Outfitters… we can’t wait to see what’s next!