Urban Outfitters is a specialty retailer founded in 1970 with over 14,000 employees and 102 stockholders. It operates 5 brands: Urban Outfitters, Free People, Anthropologie, Leifsdottir, and Terrain. Its vision is to offer compelling, distinctive products and store environments that customers feel an empathetic connection to. It targets young adult customers but saw decreased sales during the economic downturn of 2009 when this demographic had high unemployment. Current strategic recommendations include launching a wedding line, opening new stores, and developing new brand concepts, while my recommendations include outsourcing more merchandise and launching a children's line.

1. Urban Outfitters (URBN inc)ORG 601 – Case Study 2Natalie Windle

2. Company OverviewFounded in 1970 – first store near UPENN campus14,000 employees and 102 stockholdersPublic company (ticker: URBN)URBN brands (5)Urban OutfittersFree PeopleAnthropologieLeifsdottirTerrain

3. Vision/MissionOur established ability to understand our customers and connect with them on an emotional level is the reason for our success. The reason for this success is that our brands — Urban Outfitters, Anthropologie, Free People, Leifsdottir, and Terrain — are both compelling and distinct. Each brand chooses a particular customer segment, and once chosen, sets out to create sustainable points of distinction with that segment. In the retail brands we design innovative stores that resonate with the target audience; offer an eclectic mix of merchandise in which hard and soft goods are cross merchandised; and construct unique product displays that incorporate found objects into creative selling vignettes. The emphasis is on creativity. Our goal is to offer a product assortment and an environment so compelling and distinctive that the customer feels an empathetic connection to the brand and is persuaded to buy. source: http://www.urbn.com/profile/

4. MacroenvironmentEconomySpecialty retail decreased 5.7% vs. 5.2% industrywide in 2009Sales at clothing and accessories stores declined 3.7% in 2009, as opposed to 1.9% in 2008Population/DemographicsYoung adult target market (teens and 20s) experienced high unemployment levels, eliminating disposable income

5. MacroenvironmentSocietal ValuesOlder population is focusing on funding retirement, children’s tuition, and health care costs, garnering a greater share of household disposable incomeTechnologyNew technology – retailers applying science to markdowns with new analysesResult = improved merchandise margins; ability to source goods at lower pricesLegislationPotential tax implementation/increase on clothing/accessories

6. Competitive Position/Resource Evaluation

7. Strategic RecommendationsAlready in the works:Wedding line – February 201145 new stores in FY115-6 new brand concepts over the next 5 yearsMy recommendations:Outsource more merchandise to department stores/large mainstream retail chainsLaunch a children’s line

8. ReferencesStandard & Poor's. (2010, March 10). Industry surveys: Apparel & footwear. New York: Standard & Poor's.Thompson, A. A., Strickland, A. J., & Gamble, J. E. (2010). Crafting and executing strategy: The quest for competitive advantage (17th ed.). New York: McGraw-Hill Irwin.Urban outfitters, company profile. (2010). Retrieved from http://www.hoovers.com/company/Urban_Outfitters_Inc/rjtjyi-1- 1njdap.htmlURBN’s official website contains information on company philosophy, brand information, and press releases.http://urbn.com/