• The Wall Street Journal, Thursday, July 15, 2010 10:48 AM

American Eagle Outfitters is expanding from its teen base today as it opens a store in Pittsburgh carrying clothes for youngsters and toddlers, Karen Talley reports. The playground is getting crowded: Aeropostale last year expanded into kids retailing shops called P.S. from Aeropostale (they are exceeding expectations, the company says), and Gap is also expanding its kids' and baby lines.

Kid and babies are easier for teen retailers to connect with than adults, some analysts say, and Betsy Schumacher, chief merchandising officer for American Eagle's 77kids unit, agrees that there are "natural synergies" to be had. "We like to be able to have a customer start with us at birth and stay right through college," she says.

American Eagle started 77kids a year-and-a-half ago as an online offering; it used a pop-up store in Pittsburgh to test it at retail last fall. The name came from the year American Eagle was founded. Prices fall between low-priced Aeropostale and upper-end Abercrombie & Fitch

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