Monday, September 29, 2014

Urban Outfitters Plans Upsized Stores

by Paul Bubny, Globest. com
As part of a drive to double its revenues by the year 2020, Urban Outfitters will introduce a super-sized version of its Anthropologie chain, the locally based retailer said during an investor presentation Thursday. The Philadelphia-based company plans to open 25 to 50 Anthropologie locations of about 20,000 square feet each, about three times the current stores’ average footprint, Bloomberg reported Friday.
The larger-scale Anthropologie stores will offer a broader selection of home goods as well as beauty products and intimate apparel. Urban Outfitters will also test the larger format for its namesake brand as well the Free People chain.
Currently apparel represents about 71% of the product mix, while home goods comprise 17%. The 2020 product mix calls for apparel’s share to be scaled back to 53% and home goods to increase to 22%. 
“They want to turn them more into destination stores than clothing stores,” Howard Tubin, an analyst with RBC Capital Markets, told Bloomberg on Friday. “They truly understand their customers across all their brands. They believe if they offer the right product, the product will sell.”
In its most recently quarterly earnings report, issued last month, Urban Outfitters reported sales of $811.2 million, up from $774 million the year prior. The retailer has reported new sales records in each of the past 10 quarters.
www.omegare.com

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