I compared American Eagle and Abercrombie and found 2 millennial brands remaking themselves for Gen Z in very different ways

The store is located at 599 Broadway in Manhattan's Soho neighborhood. This location is called The Gateway, a multilevel store that houses all of the AEO brands. I focused on the American Eagle brand for this story.

American Eagle's women's clothing began at the front entrance, featuring many trendy denim items like maxi skirts and tube tops.

While American Eagle certainly carries pieces that are appropriate for many ages, the focus seems to be on styles geared to teens.

I went shopping at the height of the holiday season and saw an emphasis on soft and cozy materials and a lot of promotions. Some sweaters were 30% off. A pair of faux leather cargo pants was 50% off.

In keeping with that theme of soft layers, there was a "bear hug" sherpa jacket available in several bright and pastel colors. I really liked the one that came in a green and baby blue pattern, so I picked it up to try it on. The jackets were also 40% off.

American Eagle carries a variety of denim styles and washes. Keeping with the Gen Z focus, there were a lot of wide-legs, flares, and bell-bottoms. While American Eagle does carry skinny jeans, they weren't positioned as prominently.

Half of the second floor was devoted to American' Eagle's activewear for women, while the other half was devoted to the men's clothing.

Of all the brands under the AEO umbrella, the men's clothing seemed the least touched since the early aughts. While the styles have been updated for today's trends, there were still lots of plaid shirts, graphic tees, and cargos.

After checking out a couple of other brands on the bottom floor, I went to the fitting rooms. There were plenty of rooms, and they were all empty, probably because most shoppers were on the upper levels of the store.

I tried on a pair of jeans from American Eagle's AE77 collection, which the company markets as premium, sustainable denim.

I liked the look of the stovepipe style, but they were a little big. I tried on a size 4 because they didn't have the 2 in stock.

The cropped crewneck T-shirt was a nice quality and 100% cotton.

The cargos were fun and comfortable. They were a flattering fit — not too baggy or too slim. The henley was soft, and I could see it being a good layer underneath my sweaters this winter.

I tried on the sherpa jacket on top of the previous outfit. The second I put it on, I knew I had to get it. As the marketing promised, it felt like hugging a giant plushie. It was warm enough to wear as outerwear on its own or layered underneath a bigger coat. I immediately pictured myself wearing it on my flight home for the holidays.

The jacket is made from 100% recycled polyester. I noticed that many of American Eagle's clothes are made with recycled materials, undoubtedly another approach to appeal to environmentally-conscious Gen Z customers who like to buy lots of things, but also want to be sustainable.

Earlier this year, I vowed to stop buying new clothes to save my wallet and space in my closet. But alas, I loved the second outfit too much to resist. I'd had a similar fleece jacket saved to my Pinterest, and I'd been wanting to replace a pair of faux leather pants, so I told myself it was meant to be.

I walked down a couple blocks to Abercrombie's Soho store at 547 Broadway. Abercrombie's Fifth Avenue flagship is a better comparison to American Eagle's Gateway store. However, I chose this Abercrombie store, which is much smaller, for the sake of proximity and focused on how the clothing, marketing, and target customer compared.

The store seemed busy. I walked in at the same time as a group of 20-year olds who sounded smitten with Abercrombie's sweaters.

Trousers have diversified Abercrombie's pant sales into categories outside of denim.

In an earnings call, CEO Fran Horowitz told investors that while denim continues to be an important part of the business, the company has seen strong conversion in non-denim pants.

"We are really focused on the fact that bottoms are much more than denim today," she said. 

Sweaters were 30% off, and some pants were marked down by 50%.

One way Abercrombie sets itself apart from American Eagle is its selection of more formal clothing like trousers for the office and special occasion dresses.

One jacket was labeled as vegan leather, while another had interior tags touting its recycled insulation.

This particular store felt cramped due to the long, narrow format. Athletic clothing like leggings and sports bras were hidden behind stacks of sweaters.

Gone are the days of Abercrombie's heavily ripped denim. There are a few distressed styles, but most of the jeans are without holes.

You have to walk past the fitting rooms through a narrow hallway to get to the men's section. It felt like the men's clothing had been an afterthought when they laid out the floor plan.

There were only four fitting rooms, which didn't make sense for how busy the store was. I waited behind five people for about eight minutes.

I really liked the sweater and was surprised the XS fit me perfectly because I'm normally a small in Abercrombie's clothes. The leather pants were cute, but I didn't like the cropped leg.

The bodysuit fit nicely and I liked the look, but the material was thin. I really liked the pants — they were an office-appropriate twist on the very trendy cargo.

I wasn't sold on any of the pieces I tried, but I made a mental note of the sweater and cargos for a later shopping trip.

American Eagle has certainly freshened up its selection since its mall days but has kept a hold on young consumers with bright colors, soft fabrics, and styles that are trendy but not overtly fashionable. The brand takes all the viral looks from TikTok and pairs them down into approachable pieces for the everyday teen.

Yet, the brand still carries all the markers of classic American teen style: graphic tees, flannel shirts, preppy stripes, and lots — and lots — of denim.

Both brands have been successful appealing to Gen Z, but it was clear they've differentiated themselves to serve slightly different demographics.

If American Eagle is a younger, middle-America teen, Abercrombie is like the older, sophisticated sister who goes to school in the city and wears a lot of black. Most of the customers I saw shopping in Abercrombie were college-age, dressed like Soho influencers in baggy jeans and leather jackets. Even the teens I saw in the store had a darker, grungier style.

Abercrombie appeals to this demographic by doubling down on logo-free basics, office-appropriate trousers, and coastal grandmother sweaters. Nearly every piece can be dressed up or down for multiple occasions, making it a shopping destination for 20- and 30-somethings in need of a stylish, yet functional, wardrobe.