Urban Outfitters 2009 Annual Report Download - page 26

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We operated 121 Anthropologie stores as of January 31, 2009, all of which are located in the
United States. During fiscal 2009 we opened 13 new Anthropologie stores. Anthropologie tailors its
merchandise to sophisticated and contemporary women aged 30 to 45. Our product assortment
includes women’s casual apparel and accessories, home furnishings and a diverse array of gifts and
decorative items. We plan to open additional stores over the next several years, including opening
Anthropologie stores in Europe. Anthropologie’s store sales accounted for approximately 35.0% of
consolidated net sales for fiscal 2009.
We operated 30 Free People stores as of January 31, 2009, all of which are located in the United
States. During fiscal 2009 we opened 15 new Free People stores. Free People primarily offers private
label branded merchandise targeted to young contemporary women aged 25 to 30. Free People
provides a unique merchandise mix of casual women’s apparel, accessories and gifts. We plan to open
additional stores over the next several years. Free People’s retail sales accounted for approximately
1.8% of consolidated net sales for fiscal 2009.
We operated one Terrain garden center as of January 31, 2009, which is located in Glen Mills,
Pennsylvania. Terrain is our newest store concept designed to appeal to customers interested in a
creative, sophisticated outdoor living and gardening experience. Terrain seeks to create a compelling
shopping environment, inspired by the ‘greenhouse.’ The site is large and free standing. Merchandise
includes lifestyle home and garden products combined with antiques, live plants and flowers. Terrain
also offers a variety of landscape and design services. Terrain’s sales accounted for less than 1% of
consolidated net sales for fiscal 2009.
For all brands combined, we plan to open approximately 42 new stores during fiscal 2010,
including approximately 9 new Free People stores and one new Terrain garden center. The remaining
new stores will be divided approximately evenly between Urban Outfitters and Anthropologie.
Direct-to-consumer
Anthropologie offers a direct-to-consumer catalog that markets select merchandise, most of
which is also available in our Anthropologie stores. During fiscal 2009, we circulated approximately
21.5 million catalogs and believe that our catalogs have been instrumental in helping to build the
Anthropologie brand identity with our target customers. We plan to decrease circulation to
approximately 18.4 million catalogs during fiscal 2010 and replace the reduced circulation spend with
further investments in web marketing. We expect catalog circulation to be consistent over the next few
years.
Anthropologie operates a web site, www.anthropologie.com, that accepts orders directly from
customers. The web site captures the spirit of the store by offering a similar array of apparel,
accessories, household and gift merchandise as found in the stores. As with our catalog, we believe
that the web site increases Anthropologie’s reputation and brand recognition with its target customers
and helps support the strength of Anthropologie’s store operations.
In March 2003, Urban Outfitters introduced a direct-to-consumer catalog offering selected
merchandise, much of which is also available in our Urban Outfitters stores. During fiscal 2009, we
circulated approximately 12 million Urban Outfitters catalogs. We believe this catalog has expanded
our distribution channels and increased brand awareness. We plan to maintain circulation of
approximately 12 million catalogs during fiscal 2010 and continue to further invest in web marketing
initiatives. We expect catalog circulation to be consistent over the next few years.
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