Urban Outfitters China plans to expand
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US retailer Urban Outfitters has announced global expansion plans which involve a broadened commitment to China. According to a statement from the brand’s CEO Richard Hayne, Urban Outfitters China will be housing inventory while the company opens new locations in Europe and the Middle East, as well as taking on new distribution partners.
The brand’s parent firm Urbn recently posted third quarter net sales of US$973.5 million, a 9 per cent increase over the same period last year.
Urban Outfitters enjoyed strong sales while participating in the singles day shopping spree on e-tail platform Tmall.
“We plan to establish a larger presence [in China] by mid-next year. To do this we will switch to the much larger Tmall Classic platform, hold inventory in-country and fulfill orders through a third-party service provider in China. In addition, we plan to sign leases for several stores to open in calendar year 2020,” said Hayne.
Urbn will be expanding its network of 61 stores in Europe to 100 within three years, and will operate more than 10 stores in the Middle East by 2020.
Questions & Answers
Q.What is Urban Outfitters' primary strategy for expanding its presence in China?
What is Urban Outfitters' primary strategy for expanding its presence in China?
Urban Outfitters plans to switch to the Tmall Classic platform, hold inventory within China, and use a third-party service provider for order fulfillment. They also intend to open several physical stores in China during 2020.
Q.How quickly does the company plan to expand its European store network?
How quickly does the company plan to expand its European store network?
Urbn, the parent company, aims to increase its current network of 61 stores in Europe to 100 stores within the next three years. This represents a significant expansion.
Q.What were the recent financial results for Urban Outfitters' parent company, Urbn?
What were the recent financial results for Urban Outfitters' parent company, Urbn?
Urbn recently reported third-quarter net sales of US$973.5 million. This figure represents a 9 per cent increase when compared to the same period in the previous year.
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