Anthropologie Makes A Bold Move In A Time When Traditional Department Stores Are Struggling

Anthropologie doubles down on its retail strategy with a surprising announcement.

Recent conversations in the apparel industry have been dominated by a series of doom and gloom forecasts, with many fast and nimble startups entering the industry and disrupting bigger brands.

Urban Outfitters, which owns brands like American Eagle and Anthropologie, has had one of the best responses to these challenges. 

Faced with so-called “fast fashion” businesses and E-Commerce companies that increase competition in an already fiercely competitive environment, Urban Outfitters made a surprising new announcement earlier this month concerning the expansion of one of their premiere brands - Anthropologie.

Anthropologie is now taking a bold and somewhat risky approach to claiming it’s right to growth in a difficult market.

The Background Story

First, a little context. If you’ve never been in an Anthropologie store, I recommend making time for it the next time you’re near one of their locations. It’s not really my “cup of tea”, but even I can appreciate the incredible work that they are doing.

We talk a lot about creating the right experience for your customers… Anthropologie is one of those stores that absolutely nails this principle.

They have built out “concept rooms” that usually sit on the perimeter of the store. Each room is elegantly designed and unique. It maintains a balance of being comfortable and inviting, while also remaining sophisticated and luxurious.

They’ve always catered to the avant-garde; the side of fashion that puts you a little off balance and feels a little "off the wall". And it can be pricey. Although their main draw is apparel, you might also run across a $3,798.00 designer Ottoman, or a $558.00 Duvet.

A few images from the new Anthropologie store opening in California. Photos are from www.chainstoreage.com.

They Know Their Target Market

You get the point…they cater to the middle and high end of the fashion market and specialize in exquisite (and expensive) furnishings and apparel. Their model of success absolutely DEPENDS ON knowing their place in the market and being completely in tune with their customer base.

Because they aren’t trying to be an American Eagle, they don’t even make an effort to cater to a young, college-broke demographic.

In short, they don’t waste time trying to be something they are not. They have a laser focus on their target audience.

Laser Focus Leads To Bold, Confident Moves

And that is why their latest move to open a 30,000 foot store in Walnut Creek California makes perfect sense for them. Read more about this here, or here.

30,000 square feet! That's an absolutely INSANE amount of square footage, especially when you consider that a large amount of the actual merchandise is priced at several hundred to several thousand dollars per item.

But part of me thinks they know exactly what they are doing.

The Difference That A Well-Crafted Experience Can Make

Part of what you experience when you walk into these stores is the feeling that you just disappeared into a wonderland of sorts. I’ve been to their store in Portland… it’s so spacious and delicately crafted that you find yourself drawn deeper and deeper into the store, like your own version of Narnia.

You may never have considered purchasing a $30 dishtowel before, but once you’re on the third level of the store, appreciating how it’s so beautifully set against that Caskata Peony Gold Serving Bowl, it starts to make a lot more sense than it did five minutes ago when you were out on the sidewalk in the rain.

They do "retail experience" as well as anybody in the market.

If you follow the money, their bold plans are working, at least for now...

The quarterly earnings reports from May 2016 show that even as Anthropologie used fewer markdowns, it continued to boost growth for its parent company Urban Outfitters.Conclusion All of this is just food for thought for retail store owners.

Obviously, not everyone should be an Anthropologie-style store. But when you see them taking a risk like this in their current market environment, it has to make you respect their commitment and trust in their brand philosophy.

 
To read another excellent article on this, click here. To see a gallery of their new store, click here.