Urban Outfitters To Start A Wedding Brand

Aiming to maintain the growth that led to record 2009 sales and profit, Urban Outfitters Inc. yesterday disclosed plans to start another retail brand next year, this one aimed at the $60 billion wedding industry.

The Philadelphia specialty retailer, whose Urban Outfitters and Anthropologie stores target an upscale clientele, said it planned to launch the as-yet-unnamed bridal business by Valentine’s Day 2011, first online and later with a store opening.

“We think this is going to be a meaningful business,” Glen T. Senk, chief executive officer, told analysts yesterday while reviewing the company’s 2009 earnings, which included record sales of $1.9 billion and record profit of $220 million.

“Anybody we talk to about this goes, ‘Wow, that’s exciting,’ ” he said.

The idea for creating a brand aimed at weddings – featuring heirloom gowns, accessories, intimate apparel, decor, and gifts – grew out of the company’s existing business, which often catered to brides and their entourages, Senk said.

According to the company’s research, matrimony means money: The average wedding costs $45,000 to stage, and the bride alone spends $4,500 on clothing and accessories.

Bridalwear is a niche that suffered badly last year in the economic downturn; many high-end boutiques closed.

But for Urban Outfitters, the new line could represent a happy marriage with its long-term strategy to expand sales and profit by nurturing six to eight “meaningful” brands – while not allowing one brand to grow so large that it loses value. Along with Urban Outfitters and Anthropologie, the company operates Free People stores, a Terrain garden center in Glen Mills, and the Leifsdottir wholesale line.

Source (Full Article): http://www.philly.com/inquirer/business/20100305_Urban_Outfitters_to_start_a_wedding_brand.html

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