Casual apparel retailer American Eagle Outfitters will attempt to improve its overall profitability through the implementation of merchandising software by Massachusetts-based IT firm ProfitLogic.

The Merchandise Optimisation solution will be used to transition optimal regional pricing across American Eagle's 742 stores.

"Our key strategic goal in 2004 is to increase the company's overall profitability by improving our inventory production," American Eagle CEO Jim O'Donnell said.

"I'm confident that optimal pricing decisions at the regional level will be a key component of achieving higher profitability."

According to ProfitLogic, its Merchandise Optimisation suite was designed for retailers whose top priority was getting the highest possible return on inventory investments.

By using insights into future customer demand, the company said, more profitable merchandising decisions could be made.

ProfitLogic solutions have been utilised by retailers including Gap, JC Penney and Charming Shoppes.