Urban to Launch Bridal Concept

This makes perfect sense for Urban Outfitters. There are many couples who look to have non-traditional weddings, where the traditional wedding dress has no role. Urban Outfitters will be able to cater to its core customer base with this bridal offerings, and yet not necessarily be competing head-on with traditional bridal shops.

It is also a great indication of a brand truly understanding its customers, and what they desire as a part of their lifestyle. The UO customer is unique and has a distinctive view of how they want to live their life, and this will be true of the wedding in which they participate as well.

This should prove to be a smart, and profitable move for Urban Outfitters.

Joel Warady, Chief Marketing Officer, Enjoy Life Foods

First, a disclaimer. I am a huge fan of Anthropologie, and I love their stores, and that might influence my response. However, I am well past being a target for the bridal market, so I think I can be objective here. David's Bridal has proven that there is a market for a 'chain' approach to what is traditionally a boutique business, so from Urban's perspective, the business model is not risky, only whatever approach they take.

But from what I've seen, they're taking the right approach--they recognize that the value is not simply in selling the dress, it's the "attachment rate," if you'll forgive the consumer electronics term--it's all the follow-on sales that come with the dress. One of the first things women do when they get engaged is go out and try on dresses--it's the entry point for all of the other goods and services they will eventually need.

Urban as a brand is sufficiently differentiated from David's Bridal that I think they can definitely pull it off. For women who want more funk and/or shabby chic in their special day, this concept would be a clear alternative. And from all of the rock-wear that I have seen mall rats sporting lately, there is definitely an opportunity here.

Nikki Baird, Managing Partner, RSR Research

It's an interesting concept, for sure. It's one way to leverage the demographic of their existing customers.

I also know that different sectors of retail are...different. I suspect that challenges of running a bridal business are quite different than the 8-turn-a-year fashion business. There's a reason we only have one really scaled bridal business (David's). All the others are quite mom-and-pop, or stores-within-a-store at department stores.

If it works, it's brilliant, but I think it's going to cost a lot of working capital to get there.

Paula Rosenblum, Managing Partner, RSR Research

If anyone can pull this off, Glen Senk can. Urban has done a terrific job of differentiating its brands (most non-industry folks I speak with have no idea that Urban Outfitters and Anthropologie have the same parent). The company has been incubating new concepts that incorporate services such as the garden, landscape and cafe concept Terrain (so far, one location in PA) and the uber-talented group at Anthropologie could pull the bridal industry out of its race-to-the-bottom misery by offering gowns that are more personalized and hand-crafted. Owning and managing the entire wedding process will plump up sales and drive loyalty. Love it.

Carol Spieckerman, President, newmarketbuilders

Bridal is a huge category but a very fragmented business on a national scale. David's Bridal may be the only player in the industry well-known to consumers, and there is a market space between David's and bridal salons. Urban (and J. Crew, for that matter) will bring a different design and pricing point of view to the category, and Urban in particular can be expected to deliver a more contemporary point of view.

Richard Seesel, Principal, Retailing In Focus LLC

Bridal is an untapped market in my opinion. I look back to when my wife went wedding dress shopping and here in Toronto. There were basically two choices, both boutiques, both very overpriced. Urban will hopefully take some of that market share away from those overpriced, under-serving retailers that exist today based solely on lack of competition. Where were they seven years ago?!

Doron Levy, President, TheMortgageMachine.ca

I think this is a great move and a natural extension for Anthropologie, a la J.Crew, to enter this segment.

Having just been involved in a wedding, I can tell you that there is a definite market for non salon offerings. Planning a wedding is an onerous task and most brides need help just knowing what all needs to be done. If Urban can truly deliver a "one stop shop" that actually makes the process fun and doesn't break the bank it will be a big win.

And one last thing; Please, Mr. Senk, don't forget the mothers of the bride and groom when developing your plan! Most mother of the bride and groom fashions are just horrible. Bring some style to the people who in many cases are footing the bills and you'll have half the battle won.

Marge Laney, President, Alert Technologies, Inc.

This is an excellent strategy for Urban Outfitters. They have done a splendid job of capturing the Gen Y market as it migrates through its college years. As the market ages, their needs will evolve and Urban Outfitters will be there to evolve with them.

As I covered in a recent post titled "Riding the Gen Y Wave," this market is huge and it will determine retail success for a long time to come. Those who align themselves with this market, as Urban is obviously doing, will enjoy continued success.

Look for kids merchandise in Urban in another 2-3 years.

Bill Emerson, President, Emerson Advisors

I'm jumping on the bandwagon on this one! It's a great idea. I imagine that other retailers will follow...having a ready-to-wear, reasonably priced dress would be a godsend for many brides. And to get it at the store she already knows & loves--home run.

Liz Crawford, President, Crawford Consulting

While I understand the fact that there is potentially a market for this type of service and offering, it's way beyond my comprehension. If the average spending for a wedding is $45K, that means there are significant numbers spending even more. Astonishing. So the market exists, then I say go for it to Urban Outfitters.

Nevertheless, my brain still says 'ridiculi' (Scanner speak for the plural of ridiculous!). I remain amazed at the amount spent to create a fantasy for one day. It's utterly amazing, considering so many don't do this only once. Thus, the market expands further.

As I sit and fondly remember Mrs. Scanner in her $200 wedding gown--stunning as she was--I shake my head at $45K. Moreover, I click off the expenses of our wedding and would find it hard to come up with anything close to even 10% of the average quoted here. It's as elegant, simple, wonderfully done, and talked about to date by our friends and family. I'd even add the cost of the honeymood and couldn't come close. What on earth are people spending $45K on? And then again, approximately 50% will spend $90K in time? I say go for it, but it does seem like at some point folks might come to their senses? Nah, they wouldn't. Would they?

'Scanner'

Great idea. The wedding industry--apparel in particular--is considered very old fashioned and out of touch with what younger people are looking for, hence U.O.'s results in this category to begin with. Can you imagine what either brand, including Anthropologie, would do with that? Nothing but improvement, I'm sure.

Lee Peterson, EVP Creative Services, WD Partners

Building brands makes sense. Building brands off of well regarded businesses makes more sense. But, when a retailer says, "We want to help the bride plan the wedding," red flags should be raised.

That comment recognizes the fact that the business is a one-off business. There is no profitable repeat customer. Every customer has to be mined. That should always be a concern.

Gene Detroyer, Entrepreneur, Advisor, Consultant, Professor, Independent

I'd echo Paula's comments. While on the surface it seems like a logical extension of their franchise, the bridal business is a very different business. The investment is significant, the turn not so much. In the scheme of things, this is still a pretty small niche business, even with the potential of add-ons, so the potential patback to UO is likely limited. Still, UO's track record at spotting and executing trends and opportunities is a pretty strong one.

Ted Hurlbut, Principal, Hurlbut & Associates

As usual, I'm with Scanner. Forty-five K for a wedding? Do parents toss-up between paying for an unreasonably extravagant wedding and paying for college? If families are really spending this much for weddings, wedding suppliers don't have to have many customers.

M. Jericho Banks PhD, President, CEO, Forensic Marketing LLC

Urban Outfitters, Inc is a unique lifestyle specialty retailer, so unique that Glen Senk and his team should be able to build this concept into there brand. Today's consumer wants-expects something different and if executed correctly, Urban Outfitters can add to the bottom-line and create a deeper connection to the brand.

Brian Anderson, President, BA Search Group