Urban Outfitters Inc. announced plans to launch a new concept focused on the $60 billion wedding industry. According to the company's research, the average wedding costs $45,000, with the bride alone spending $4,500 on clothing and accessories.
The idea for creating a brand aimed at weddings grew out of the company's existing business, which frequently catered to brides and their entourages. An online site will be launched for the as-yet-unnamed business by Valentine's Day, with a store to open later.
"We think this is going to be a meaningful business," Glen Senk, chief executive officer, told analysts on a conference call announcing fourth-quarter results. "Anybody we talk to about this goes, 'Wow, that's exciting,'" he said.
The wedding concept will sell heirloom gowns that cost between $1,000 to $5,000. A design team from Anthropologie as well as guest designers will create the gowns. Mr. Senk also plans to offer bridesmaids' dresses, jewelry, shoes, accessories and invitations.
"We want to offer a community for brides," he said. "Travel services, wedding planning and flowers are things we could potentially offer. We're trying not to be just about selling products. We want to help the bride plan the wedding."
Success with the bridal business will be part of a long-term strategy of growing by creating six to eight "meaningful" brands. The company is well known for limiting stores for its Urban Outfitter and Anthropologie chains to support demand. The company also operates the Free People stores and wholesale business, a Terrain garden center in Glen Mills, and the Leifsdottir wholesale line that will also be soon opening its first store in New York City.
The company is expanding its European presence and is laying the groundwork to move into the Far East in 2012 or 2013. Mr. Senk said he envisioned international sales eventually amounting to 25 percent to 35 percent of the company's business.
J. Crew has also been moving aggressively into the wedding business over the last year. Net-A-Porter, the online luxury site, also launched a wedding boutique in February.
Discussion Questions: What do you think about Urban Outfitter's testing of a bridal concept? Is a specialty store such as Urban Outfitter's well suited to pursue the opportunity? Are the current and emerging generation of brides looking for a different retail experience?