Fig 2 - Urban Outfitters. N.D. XLARGE Black Check Logo Shirt [photograph]
This report is a case study of Urban Outfitters where the brand will be analysed through an identity prism, brand positioning map and survey.
These models helped in identifying key competitors, characteristics and issues within the brands current buying and merchandising strategy.
Urban Outfitters high price points were flagged as an issue. To combat this challenge, a lower priced range of staple pieces has been suggested to help attract younger consumers and stay competitive in the market.
This solution could also expand long-term and be a collection of capsule wardrobes for all different events consumers may attend.
Fig 5 -EDITED Dashboard: Analysis: Categories, Selected filters: all tops, dresses, bottoms, outerwear, all-in-ones, footwear, swim and accessories in the UK [doughnut chart]
This case study analyses Urban Outfitters and their position in the high-street fashion market. Their current buying and merchandising strategy is also analysed and used to highlight a key issue they may face This study found that for a highstreet apparel retailer, Urban Outfitters price point is significantly higher than competitors for similar product offerings and compositions of materials.
“Urban Outfitters UK is a lifestyle retailer dedicated to inspiring customers through a unique combination of product, creativity and cultural understanding” (Urban Outfitters N.D.A)
As illustrated in Figure 5, the largest product offering of their own brand in the UK is tops making up almost 70% of their whole range The next largest category being accessories at just over 22% of the range. Urban Outfitter own brand currently have no swim wear options and a limited bottoms, dresses and footwear range.
Figure 6 displays the brands current price architecture and range of the products discussed
“A place for likeminded, creative individuals and a community space”
(URBN 2025)
Urban Outfitters was founded in 1970 in Pennsylvania by Dick Hayne and Scott Belair. (URBN 2025) The first store was called Free People and their mission was to provide second-hand clothing, furniture, jewellery and home décor for college-aged customers in a casual and fun environment (URBN 2025)
Urban Outfitters was created as a private label division of Free People in 1976 (Zippia ND) to make product exclusive to the brand To help meet the immediate demand, Dick created a wholesale line that became so well received, the businesses separated (URBN 2025)
Over 200 stores in the US, Canada and Europe offer clothing, accessories with home products and a focus on creativity and culture (URBN 2025) They first expanded to the UK in 1998 on Kensington High Street in London and opened an online store in 2000 (URBN 2025)
Good on You rated Urban Outfitters ‘Not good enough’ for their sustainability efforts in 2024 (Good on You 2024) They do use some lower-impact recycled materials, however, they follow an unsustainable fast fashion model with quickly changing trends and regular new styles. (Good on You 2024)
Sustainability
71% of apparel made of alternative fibres but aim for 75% by 2026
Introduced 100% alternative cotton sourcing (Urban Outffitters N.D.) By 2026, aim for all packaging made from 100% recycled alternative fibres (Urban Outfitters NDC)
BRAND IDENTITY PRISM
Picture of sender
Physique
Products: everyday clothing, accessories, home goods and beauty products.
Design: vintage, boho, streetwear, lots of different patterns, materials and colours.
Logo: no strong branding on the clothes, but all have a unique and vintage aesthetic
Relationship
Loyal customer relationship
Exclusive offers
App loyalty program
Student discounts
Strong community
Personality
Confident
Loves music
Creative
Extrovert
Trend driven but unique style
Takes inspiration from the 2000s
Free spirited
Independent
Reflection
Outspoken and opinionated
URBAN OUTFITTERS
Culture
To create a place for likeminded, creative individuals
To provide secondhand clothing, furniture, jewellery and home décor for college-aged customers in a casual and fun environment (URBN 2025)
Self-image
Empowered
Fashionable
Quirky
Diverse
Sociable
Trend setter
Picture of receiver
On trend yet individual
Independent
Adventurous
THE CONSUMER
Maeve
Lives in London and studies fashion at University while working at her local pub parttime
Aged 22 and her star sign is Libra
Frequently buys and sells on Vinted and shops in charity shops
Also shops at Brandy Melville, Hollister, Asos, Motel Rocks, Edikted and Jaded London
Loves coffee dates, city breaks and nights out with her friends
Shops impulsively and frequently both online and in-store
Takes inspiration for influencers like Olivia
Neill and Flossie Clegg but loves having a unique style
Uses pinterest for style inspiration (SimilarWeb 2025a)
Social activist
Current consumer
Current 65% live in the US, 77% are female and 33% are aged 25-34 (Similar Web 2025a)
18-34 year old men and women (Similar Web 2025a)
MARKET ANALYSIS
Urban Outfitters operates online and in-store in the high-street fashion market. The apparel market in the UK is forecasted to grow by almost £10 billion between 2025 and 2029 Revenue is estimated to reach just under £79 billion. (Tcholakova 2025a)
The brands closest competitors as seen on the market map are Pull & Bear and Bershka, both in-store and online brands, as well as online retailer Asos, all similar in quality but Urban Outfitters price is higher
What sets Urban Outfitters aside from their competitors is their passionate and creative mission to create a community for their customers. They do this through “UO Rewards” that encourages loyalty between the brand and their customers Their product range also includes an edgier and more vintage style than most other high street brands.
The comp shop completed supports the positions in the market map of Urban Outfitters, Bershka and Pull & Bear. As seen in figures 10, 11 and 12, Urban Outfitters price for a simple light coloured jacket is almost £30 more than Pull & Bear’s for the same materials and nearly double the price of Bershka’s who offer certified recycled polyester. (Bershka ND)
Fig
Jacket Comp Shop [photograph]
Fig
- Wallpapers Ok ND Eye Catching Leopard Print Wallpaper [photograph]
CURRENT BUYING AND MERCHANDISING STRATEGY
Urban Outfitters have over 30,000 sold out products of their own brand, however, only 4,000 of these have ever been replenished after selling out This implies they prefer to invest in upcoming trends than create a timeless collection (Edited 2025)
The CEO has found that offering promotions on their products have repelled customers from their full price options. (Weston 2022) Only 86 from 1057 products of their own brand in the UK are not on promotion (Edited 2025) The high price point as a high-street brand reflects a lack of consideration for customer wants and budget in the current economy
Urban Outfitters have introduced 260 new products this month, 80 of these already discounted by at least 13%. Although they are discounted, the average price is still over £30, (Edited 2025) making products feel less popular
The brand standardly offers five sizes ranging from XSXL. (Urban Outfitters N.D.B) This could alienate a consumer who isn’t in their size offering and make them feel unwelcome in the community
Their largest product offering is tops, accounting for 70% of their product mix. The most popular top being the tshirt, making up half of the tops categorys stock. (Edited 2025)
They have started releasing their A/W25 collection this July, displaying how soon before the season they drop collections. (Edited 2025)
UO Rewards, a customer loyalty program that helps create authentic, lasting relationships with customers by giving them exclusive offers and unique experiences (GlobalData 2025) This programme encourages customers to return to the brand rather than going elsewhere. Strong multi-channels selling platforms through their app, website, social media and customer contact centres (Globaldata 2025)
Weaknesses
They recorded a decline in their current ratio in FY24 (GlobalData 2025) indicating a higher risk of financial distress. (Fernando 2025) Raised prices in 2022 which has “deterred customers from purchasing full-price items” (Weston 2022) Increase in consumer shopping when promotions were offered causing sales to drop 11% (Weston 2022)
Opportunities
Brand executives plan to broaden their price ranges, and focus on brand positioning. (Balchandani 2024)
Brands that do not wish to follow consumer wants and decrease prices, must show why their products are worth the premium price (Balchandani 2024)
Threats
High-street fashion market is oversaturated with many different brands with competitive price points. Rise of dupes (Balchandani 2024) from Shein who offer low price and quality (Wong 2025)
Intense competition could force companies like Urban Outfitters to reduce prices to remain competitive (GlobalData 2025)
There are many aspects to Urban Outfitters current buying and merchandising strategy, their price point being a key part As the pressure of financial costs in everyday life continue to increase, (Mcnicol 2024) their average consumers are seeking to prioritise value in their apparel above quality. (Wong 2025) In June 2025, almost 60% of households in the UK reported that their cost of living had increased in the previous month (Clark 2025) As a result, younger consumers are more conscious of not over-spending (Murillo 2025)
SHEIN, the “world’s most-Googled clothing brand, the largest fastfashion retailer by sales in the US, and one of the most popular shopping apps in the world” (Lipman 2024) have taken over young consumers shopping habits through their highly affordable prices and wide product offering. The tag #Sheinhaul has been viewed a collective 14.2 billion times on TikTok, (Lipman 2024) which is a leading social media platform in Gen-z consumers (Bashir 2025)
Urban Outfitters largest age range of customers is 25-34 making 33% f h i di (Si il W b 2025 ) i h h
To combat Urban Outfitters high prices in comparison the brand should introduce a budget range capsule w that can be mixed and matched to create multiple loo centred around comfort, practicality and current trend to enhance and style outfits. Gen-z fashion focuses on expression, confidence and is more experimental Thes in Urban Outfitters as a brand and aligns with younger them attract the 18 - 24 age range
Urban Outfitters have sustainable practices in place, (U however, this collection is designed to appeal to young considerate of sustainability but prioritising value (Wo fabrics that create 6 3 million tons of textiles a waste th process (Ellen MacArthur Foundation 2017) when poss manufacturing costs for this solution low while minimi Using excess materials also helps the budget collection extension of the brand with the look and style remainin will consist of staple garments such as t-shirts, tank top hats for men and women at a lower price
A survey was completed for the purpose of this case st participants, 76% being age 18 - 24 who were asked for quality but lower price range by Urban Outfitters 44% they did not feel Urban Outfitters price point was reflec current products, while 32% answered maybe. (Append would you shop at Urban Outfitters more if they offere 87% answered yes This highlights a large gap that con have felt for some time as 92% are existing customers
Travel appears in high density of their consumers searc 2025b) suggesting this is a market that Urban Outfitte in. Research also shows that 76% of Gen-Z say that they travel than they used to be (Hinton 2024) This inspired collection, the ‘Budget Backpacker’ A capsule wardrob everything someone travelling in a gap year or summe style multiple outfits from day to night.
THE SOLUTION
Product: A budget capsule wardrobe of staple garments delivered/sold in Urban Outfitters normal packaging but will come with a free sunglasses case to align with the travel interest of consumers and look book for the collection. The clothing will not have any branding of their logo but prints and materials will reflect the brands unique style
Place: It will be available online and in-store The flagship store, Oxford Street will be offering a limited cap, only available at their location The app and website will feature a landing page for the collection to be the first thing consumers see. High volumes of stock will be available as it is not solely based on trending styles
Price: Prices will range from £6 to £25 for jeans and shorts. An additional 10% with student discount will be available but prices will not be discounted further This gives the collection an average price of £15.50.
Promotion: The collection will launch on TikTok shop, allowing Influencer marketing to happen organically. (Ross 2025) Content creators such as Kyra-Mae and Olivia Neill are frequently travelling and known for their fashion sense.
People: The brand and their suppliers will provide ethical working conditions in collaboration with their factories Quality customer service will be provided to consumers instore and online with swift service and shipping updates
Fig 21 - 29 New collection moodboard [photographs]
C O N C L U S I
In conclusion, the key issue Urban Outfitters are facing in their buying and merchandising strategy is their high prices in comparison to their competitors. Research of the market highlighted that younger consumers are seeking value in their clothes due to inflation.
Using findings from a survey, it was clear there is a demand for a lower budget collection where consumers were willing to compromise on quality. (Appendix 1) This collection will help them attract a larger community from the 18 - 24 range while encouraging their existing consumers to shop with them more often as they become less costly.
Long-term, the brand could continue to grow this expansion of a budget range in to capsule wardrobes for all occasions. This could be done with the help of AI, a growing method of trend forecasting analysis that can also help to see demand and prevent overinvesting in a collection. (Binns 2024)
APPENDIX 1
Bibliography
BALCHANDANI, Anita and Felix Rolkens and Gemma D’Auria 2024 ‘The State of Fashion 2025: Challenges at every turn’ MCKINSEY [online]
Available at: https://wwwmckinseycom/industries/retail/our-insights/state-of-fashion [Accessed 18/07/2025]
BASHIR, Umair. 2025. ‘Most well-known social networks in the UK 2024’ .STATISTA [online]
Available at: https://wwwstatistacom/statistics/1309958/most-well-known-social-networks-in-the-uk/ [Accessed 13/07/2025]
FERNANDO, Jason. 2025. ‘Current Ratio Explained With Formula and Examples‘ .INVESTOPEDIA [online]
Available at:https://wwwinvestopediacom/terms/c/currentratioasp#:~:text=A%20current%20ratio%20tha t%20is%20lower%20than%20the%20industry%20average,or%20default%20by%20the%20company [Accessed 18/07/2025]
Available at: https://wwwdrapersonlinecom/insight/comment/keeping-fashion-customers-engagedamid-the-cost-of-living-crunch
[Accessed 18/07/2025]
MURILLO, MIKE. 2025. ‘Post-COVID ‘revenge spending’ appears to be on the way out‘ .WTOP [online]
Available at: https://wtopcom/consumer-news/2025/06/post-covid-revenge-spending-appears-to-be-onthe-way-out/ [Accessed 18/07/2025]
PULL AND BEAR, ND - ‘Worker Jacket with Buttons’ PULLANDBEAR [online]
Available at: https://wwwpullandbearcom/gb/worker-jacket-with-buttons-l07700352? cS=711&utm source=google&utm medium=cpc&utm campaign=PB PER Marca GADS GB SHOPPING MIX MIX UNISEX&gclsrc=aw.ds&gad source=1&gad campaignid=18725257174&gbraid=0AAAAADh2FHrGR6ORcuijmnDAxSlbjn&gclid=Cj0KCQjwyIPDBhDBARIsAHJyyViQ9Swge5mVWCD y 2AYbno8LpJhHxkkJnbRo73ja4Os00HxyUt-MaAgA6EALw wcB [Accessed 29/06/2025]
ROSS, Christopher 2025 Global influencer marketing value 2015-2025‘ STATISTA [online]
Available at: https://www.statista.com/statistics/1092819/global-influencer-market-size/ [Accessed 13/07/2025]
SIMILAR WEB, 2025a ‘Urban Outfitter Website Performance’ SIMILARWEB [online]
Available at: https://prosimilarwebcom/#/digitalsuite/websiteanalysis/overview/websiteperformance/*/999/1m?webSource=Total&key=urbanoutfitterscom [Accessed 24/06/2025]
SIMILAR WEB. 2025b. ‘Urban Outfitters Website Performance - Audience Interests’ .SIMILARWEB [online] Available at: https://prosimilarwebcom/#/digitalsuite/websiteanalysis/audience-interests/*/999/1m? webSource=Total&key=urbanoutfitterscom [Accessed 15/07/2025]
Tcholakova, E. 2025a. ‘Revenue of the apparel industry in the UK 2018-2029‘ .STATISTA [online]
Available at: https://www.statista.com/forecasts/1156059/apparel-market-revenue-in-the-united-kingdom [Accessed 17/07/2025]
Tcholakova, E 2025b ‘Factors driving the purchase of clothing in the UK 2024‘ STATISTA [onliine]
Available at: https://wwwstatistacom/statistics/1099035/factors-driving-purchase-of-clothes-in-the-uk/ [Accessed 18/07/2025]
URBAN OUTFITTERS, N.D.A. ‘About OU United Kingdom’ .URBANOUTFITTERS [online] [Available at: https://www.urbanoutfitters.com/en-gb/ [Accessed 18/07/2025]
Available at: https://wwwurbanoutfitterscom/en-gb/uo-in-progress [Accessed 18/07/2025] URBN, 2025. ‘About us’ .URBN [online] Available at: https://www.urbn.com/our-brands/urban-outfitters/about-us [Accessed 23/06/2025]
WESTON, Sabina 2022 ‘Urban Outfitters CEO regrets price hike as sales take toll‘ DRAPERS [online] Available at: https://wwwdrapersonlinecom/news/urban-outfitters-ceo-regrets-raising-prices-as-salestake-toll [Accessed 18/07/2025]
WONG, Zoe Bayliss. 2025. ‘High Street Fashion In Crisis: Surviving The Fast Fashion Split?‘ .FORBES [online]
Available at: https://wwwforbescom/sites/zoewong1/2025/03/18/high-street-fashion-in-crisis-survivingthe-fast-fashion-split/ [Accessed 18/07/2025]
ZIPPIA, ND ‘URBN company history timeline’ ZIPPIA [online]
Available at https://wwwzippiacom/urban-outfitters-careers-12179/history/ [Accessed 17/07/2025]
Available at: https://wallpapersokcom/images/thumbnail/eye-catching-leopard-print-patterntqa1oe2clzqalbvr.webp [Accessed 29/06/2025]
Figure 2 - Urban Outfitters ND XLARGE Black Check Logo Shirt [photograph]
Available at:https://imageseuurbndatacom/is/image/UrbanOutfittersEU/0215448670006 001 a2? $xlarge$&fit=constrain&fmt=webp&qlt=80&wid=1314
[Accessed 16/07/2025]
Figure 3 - Who What Wear. 2019. Urban Outfitters Just Brought Back These Iconic Pieces From 1994 [photograph]
Available at: https://cdnmoscmsfuturecdnnet/whowhatwear/posts/268517/urban-outfitters-anna-suicollaboration-268517-1537828278279-product jpg
[Accessed 23/06/2025]
Figure 4 - Urban Outfitters. 2025. A gnarly haul for you [photograph]
Available at: https://www.instagram.com/p/DKP98opTRdI/?igsh=MjNobTY1b2gxNTRr [Accessed 20/07/2025]
Figure 5 - EDITED Dashboard: Analysis: Categories, Selected filters: all tops, dresses, bottoms, outerwear, all-in-ones, footwear, swim and accessories in the UK [doughnut chart] Available at:https://app.edited.com/#market/dashboard/522657/new?vertical=apparel [Accessed 16/07/2025]
Figure 6 - EDITED Dashboard: Analysis: Price architecture, Selected filters: all tops, dresses, bottoms, outerwear, all-in-ones, footwear, swim and accessories in the UK [graph] Available at: https://appeditedcom/#market/dashboard/522657/new?vertical=apparel [Accessed 18/07/2025]
Figure 7 - Fashion Gone Rogue. 2014. Urban Outfitters’ New Spring Shoot [photograph]
Available at: https://www.fashiongonerogue.com/wp-content/uploads/2014/03/uo-wild-at-heart1.jpg [Accessed 16/07/2025]
Available at: https://prosimilarwebcom/?ntflow=marketing#/digitalsuite/websiteanalysis/audienceinterests/*/999/1m?webSource=Total&key=urbanoutfitterscom [Accessed 20/07/2025]
