American Eagle, Office Depot pull plug on third-party logistics services

Core Viewpoint - American Eagle Outfitters (AEO) is shutting down its logistics subsidiary, Quiet Logistics, raising concerns about the sustainability of the supply chain-as-a-service model for retailers [1][2][3] Company Summary - AEO is winding down Quiet Logistics, which was acquired for $360 million in 2021, to focus on its core retail business and growth [2][3] - The decision to close Quiet Logistics will be implemented over the next several months, with AEO assisting current customers in transitioning to new providers [3] - Quiet Logistics has previously served notable clients such as luxury brand Perfect Moment and Baggu [3] Industry Insights - Experts suggest that AEO's move reflects a broader trend where retailers are realizing the challenges of monetizing their supply chains while managing their own fulfillment needs [4][5] - The closure of Quiet Logistics follows a previous facility shutdown in St. Louis, indicating potential operational difficulties [4] - The logistics market is pushing companies to focus on their own volume rather than serving third-party brands, as highlighted by industry commentary [5]