What Are The Changes Urban Outfitters Is Implementing To Differentiate Itself?

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URBN: Urban Outfitters logo
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Urban Outfitters

In the face of serious competition from fast-fashion and internet retailers, there is a need among brick and mortar companies to differentiate themselves from the market. One such company, Urban Outfitters (NASDAQ:URBN), has been employing a number of tricks to distinguish itself, as it has seen its market share dwindle in the increasingly contentious retail environment. A couple of the measures undertaken by the company have been highlighted below.

1. Attempt To Trump Its Sales With Anti-Trump T-Shirts

Urban Outfitters seems to have struck gold with its anti-Trump merchandise with the message ‘IDK Not Trump Tho’, which means ‘I don’t know, not Trump though,’ and ‘Vote Trump 20NEVER.’ This slogan is plastered on t-shirts and coffee mugs, which the company created after a licensing deal with comedian Dave Ross, who came up with the slogan. While being politically incorrect may not be in the best interest of retailers, it is working quite well for Urban Outfitters. The first run of 300 shirts were sold out in under 24 hours, prompting the store to order thousands more. Another product, a book entitled ‘Quotations From Chairman Trump,’ modeled along the lines of Chinese communist leader Mao Zedong’s ‘Quotations From Chairman Mao’, is also flying off the shelves. The book is a collection of hilarious quotes from the Republican presidential candidate. The author, Carol Pogash, believes the purchasers not only include those looking for comic relief at the hands of Trump, but also his followers who would want to read his quotes. The store initially ordered 5,000 copies of the book, but its publisher has been told to print an additional 20,000.

GenForward Poll

The political move of the company resonates with its target demographic – the millennials – who have been most likely responsible for the surprising success of these products. As per a poll by GenForward, Donald Trump is wildly unpopular among young adults, and nearly two-thirds believe him to be a racist. Moreover, only 19% of young people have a favorable view of him, as opposed to three-quarters who have a “dim view” of him.

Trump Popularity

2. Luring Shoppers With Bars And Pizzas

The retailer has begun to offer more than just clothing at some of its stores. In three of its locations – Brooklyn, Los Angeles, and Austin – the company’s stores feature several bars. In its Brooklyn store, called Space Ninety 8, there are two bars, one on the roof, and another next to its men’s department on the third floor, as well as an Israeli restaurant. In fact, browsing through the clothing aisles with a drink in the hand is not discouraged. The retailer isn’t alone in adopting this strategy; Barnes & Noble has in-store cafes, and a Target store in Chicago features a Starbucks. This tried-and-tested strategy of malls, with cafes and food courts, is now being used by retailers trying to lure consumers, who are shifting to the Internet for all their shopping needs. This also stems from recent data by research firm Nielsen, which noted an increase in restaurant sales of 10% between April 2014 and April 2015, while only a 2% to 4% rise in retail sales. According to Anjee Solanki, national director of retail services in the US for Colliers International, while people may not be shopping for clothes often, eating out is habitual. Many people even come to the restaurant or bar just for drinks or the atmosphere.

The company has also purchased the Vetri family restaurant group, which includes pizza chain Pizzeria Vetri, for $20 million. The reason stated by CEO Richard Hayne was the substantial rise in the spending on casual dining, which can help the retailer to gain directly from this acquisition. However, indirect gains are also in the cards as Urban Outfitters can leverage the pizza outlets to improve the shopping experience and thus drive store traffic. In the wake of the growing customer disconnect with brick-and-mortar stores and increasing use of online shopping, retailers across the industry are trying hard to win customers back. And this acquisition by Urban Outfitters is a move on that front.

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