Urban Outfitters is rolling out a new concept to more stores in a bid to cater to Gen Z shoppers’ local preferences and a refreshed design.
The Philadelphia-based retailer last week brought the format to the Glendale Galleria in Glendale, California, following a debut last month at Citycentre in Houston. The new format is slated to expand to a third store next month, at the Westfield Montgomery Mall in Bethesda, Maryland. And it will launch at an additional seven locations across the United States next year, according to Urban Outfitters.
That isn't the retailer's only different direction and foray. In addition to that new format, Urban Outfitters has now opened a half dozen resale stores, called Reclectic, catering to young consumers' desire to find sustainable — not fast — fashion at a bargain price. A number of national chains have sprung up in this particular retail sector.
The new Urban Outfitters' format features a "brighter, more modern, and flexible design" than the chain's traditional stores with "market-curated" merchandise that takes into consideration "local shopping behaviors and community nuances," according to the company. The goal is to tailor the in-store experience to Gen Z, the digital-native demographic of those born between 1997 and 2012.
“Our goal is to be the go-to brand and destination for the categories and brands that define our customer’s style, and a source of inspiration through our creativity,” Shea Jensen, Urban Outfitters president, said in a statement. “This new format gives us the freedom to shape our stores around our customers, their lifestyle, and the moments that matter most to them.”
Gen Z mall lovers
The retailer also said it is meeting Gen Z where it shops, with that demographic driving renewed foot traffic to malls as spaces for connection, like Glendale, balanced with street-level locations such as Houston.
"Insights from [Urban Outfitters] Insiders, the brand's community of highly engaged Gen Z shoppers, underscore this approach — revealing that 72% of Gen Z consumers are shopping in malls, the most popular in-person shopping destination among the demographic," the retailer said.
In Houston, the merchandise "leans into dresses, denim, and an accessories edit tapping into Gen Z's love of personalization with handbags, scarves, charms, bangles, and more," according to Urban Outfitters. In Glendale, "a refreshed men's strategy takes center stage, with an expanded men's assortment of signature graphic tees, hoodies, pants, wardrobe essentials and curated brands, along with improved wayfinding and signage," the retailer said.
The hallmarks of the new format include an increased beauty assortment; a bigger footprint for best-selling brands; new modular fixtures to enable shifts for trends and seasons; more spacious fitting rooms; and warm materials and rich textures incorporated into store design.
"Urban Outfitters has a lot of success with Gen Z, but it knows it must deepen the experience to retain their loyalty and spend," Neil Saunders, a retail analyst and managing director at analytics firm GlobalData, said in an email to CoStar News. "The new format is an attempt to do that by introducing more sensitivity and flexibility. It basically allows Urban Outfitters to tailor its offer and experience to individual markets and locations."
Thrift, resale trend
That's "important for the authenticity and feeling of genuine connection that Gen Z craves," according to Saunders.
Urban Outfitters didn't respond to an email from CoStar News on Wednesday seeking comment.
The company — owner of not only its namesake chain but also Anthropologie, Free People, FP Movement and the clothing rental subscription service Nuuly — currently has Reclectic resale stores in Charlotte, North Carolina; Chicago; Dallas; New York City; Philadelphia; and Tempe, Arizona.
"The secondhand play is a smart move because this is still a fast-growing market," Saunders said. "Urban Outfitters is in a good position to take advantage of it because it has so many different brands that can feed into the inventory. That said, I don't think this will become a huge part of the Urban Outfitters' portfolio."
The Reclectic stores sell a variety of products and samples from Anthropologie, Free People and Urban Outfitters as well as "gently used Nuuly inventory," according to the directory for Franklin Mall in Philadelphia, one of Rclectic's locations.
"Reclectic's assortment skews heavily toward women's apparel and accessories, but is location specific," according to Reclectic's website. "Most locations carry a small assortment of men's and home products; however, inventory levels can vary. Items arrive at our locations from both our retail and direct channels, and can be new with tags, customer returns or pre-loved items from our rental business, Nuuly."
As of July 31, in the U.S., Canada and Europe there were 257 Urban Outfitters stores, 247 Free People stores and 243 Anthropologie stores.