Urban Outfitters Smartly Extends Anthropologie's Reach into the Global Market

All that revenue Urban Outfitters (URBN) generated last year (to the tune of a record $1.9 billion) is going to good use as the company expands its successful Anthropologie brand. This comes on the heels of UO's announcement of its entry into the bridal business which while smart, is a bit of an investment stretch because it'll have to be started from scratch. Launching an international e-commerce site for Anthro (as it's known to devotees) on the other hand, is practically a no-brainer. As is opening a second store in London.

First, because you can't argue with the numbers. Now in its 18th year, Anthropologie is a top performer for Urban, ringing in a ten percent increase in sales in the fourth quarter.

Second, Anthro's target demographic is women between 30 and 45 years old. This is practically genius at a time when most retail establishments are sharply divisive -- think an exercise in buying jeans with only two options: "juniors" super low-slung crack-exposing or "misses" 12 inch plus rise easy fit mom-style -- catering either to trendy teens or (often hopelessly dowdy) older women.

Third, Anthro offers these customers a total shopping experience in an atmosphere infused with creativity. More than 100 stores in the U.S. feature one-of-a-kind antiques and furnishings to display the clothes. The stock is rotated almost daily (a trip back to purchase a bag a day after spying it on a mannequin triggered a full on hunt by the sales staff who'd already incorporated it into another tableau on the other side of the store). Apparently even that umm, older, bombshell of design Donatella Versace is a fan.

Anthro's latest London store on the King's Road will feature a similar product mix of apparel, accessories, gifts and housewares as its stateside cousins but will also have a dedicated gallery space open to a revolving roster of European artists and designers.

Fourth (and final), Anthro's Web sites -- both global and U.S. versions -- have managed to capture some of its shops' quirky ambience to the virtual realm. Taking a page (literally) from their successful print catalogs, Anthro's signature dreamy collages, photo spreads and clever copy are woven into the Web sites' functionality. It's a total fashionista fantasy.