It Makes Sense For Urban Outfitters To Sell Pizza. Seriously

Kim Bellware
Updated

If Urban Outfitters and pizza are amillennial matchmade inheaven, no one told the company's investors.

Urban Outfitters stocks tumbled less than one day after the retailer announced its purchase of the Philadelphia-based Italian restaurant group that includes Pizzeria Vetri.Shares fellby as much as 13 percent in early trading Tuesday, according to Business Insider.

The foray into dining may have spooked investors who view the purchase as a diversion from the core business, said Howard Davidowitz, CEO of the national retail consulting and investment banking firm Davidowitz & Associates.

Despite the risk, he told The Huffington Post, the move is a savvy one, given the millennial spending shift to dining and experiences over purchases like clothing -- and their preference for online shopping over brick-and-mortar stores.

"All the shopping is done online and portably -- and the one thing Amazon can’t do is feed you a goddamn pizza,” Davidowitz said.

Shopping malls, for example, have been forced toreimaginethemselves in an effort to retain the coveted millennial demographic that typically shuns cars and happily shells out for convenience.

"Spending on casual dining is expanding rapidly, and thus, we believe there is tremendous opportunity to expand the Pizzeria Vetri concept," said Urban Outfitters CEO Richard Hayne in a statement.

Davidowitz noted that even department stores like the high-end Bergdorf Goodman and Bloomingdale's are investing heavily into dining experiences.

"More retailers are enhancing their restaurants than I’ve ever seen,” Davidowitz told HuffPost. He cited a Juneinterview in which Bloomingdale's CEO Tony Spring identified the retailer's popular Forty Carrots frozen yogurt as the hottest attraction in the store.

"I think from the point of view of Urban Outfitters, the first thing they know is that the longer a customer stays in the store, the more business they’re going to do,” Davidowitz said. “The second thing Urban Outfitters knows is that millennials are spending more money eating out. They know their base is interested in this, and they can’t think of anything better to attract them with than pizza."

Marketing research shows that millennials are more willing than any other age group tospend on food. They also make up 25 percent of the U.S. population and wield $2.45 trillion in spending power, according torecent datafrom Restaurant Marketing Labs.

And thanks to the generation's savvy with mobile technology (they check their phones an average of 43 times a day, according to RML), more clothing and retail purchases arehappening online.

Davidowitz said despite the scare felt by investors, Urban Outfitters' decision to tackle the changing habits of its customer base head-on is a "wise" move that could pay off big in the long run, especially if the retailer makes sure its new pizza offering is special. "The Japanese have a word, nintai, which means patience -- which investors never have,” Davidowitz said. "This is the kind of investment that will take years to prove or disprove if it works.” Also on HuffPost:

Irish Drunk Scoop

In March 2012, Urban Outfitters began selling St. Patrick's Day-themed clothing that included shirts with derogatory statements about Irish people, such as: "Irish I Was Drunk." These shirts received negative reactions from Irish-Americans and were pulled. (<a href="http://www.huffingtonpost.com/2012/03/01/urban-outfitters-st-patricks-day-clothes-_n_1313242.html" target="_hplink">Urban Outfitters</a>)

Eat Less

In June 2010, Urban Outfitters released this t-shirt with this description: "Eat less or more or however much you'd like in this seriously soft knit tee cut long and topped with a v-neck." They should have printed that whole description instead of just "eat less" which seems to promote an unhealthy lifestyle and body image. (<a href="http://www.huffingtonpost.com/2010/06/03/eat-less-urban-outfitters_n_598904.html" target="_hplink">Urban Outfitters</a>)

Catalog Photo Condemned

Urban Outfitters <a href="http://www.huffingtonpost.com/2012/04/17/urban-outfitters-lesbian-kiss-photo-one-million-moms_n_1431134.html" target="_hplink">received heat</a> from anti-gay groups for this photo in their April 2012 catalogue depicting two female models kissing. A group known as One Million Moms wrote on their website: "On page two of this catalog is a picture of two women kissing in a face holding embrace!...The content is offensive and inappropriate for a teen who is the company's target customer." (<a href="http://www.huffingtonpost.com/2012/04/17/urban-outfitters-lesbian-kiss-photo-one-million-moms_n_1431134.html" target="_hplink">Urban Outfitters</a>)

'Obama/Black' Option

In April 2010, Urban Outfitters pulled a t-shirt from their online store with a color option of 'Obama/Black.' The store had produced Obama-themed shirts but none of them with this color description. In response, the store released this statement: "The burnout pattern on this shirt is comprised of two colors - one is an internally developed color we called "Obama Blue" and the other is "Black." Unfortunately our website database truncate this combination to read "Obama/Black." We should have caught the error, and apologize for offending anyone." (<a href="http://www.huffingtonpost.com/2010/02/01/urban-outfitters-obamabla_n_444220.html" target="_hplink">Urban Outfitters</a>)

'Tranny' Greeting Card

In March 2012, Urban Outfitters came under fire for a greeting card that was deemed transphobic by LGBT advocates. (<a href="http://www.huffingtonpost.com/2012/03/19/urban-outfitters-tranny-greeting-card_n_1364589.html" target="_hplink">Urban Outfitters</a>)

Kiss Me Tee

Another derogatory t-shirt against Irish and Irish-Americans saying: "Kiss me. I'm Drunk, or Irish, or whatever." (<a href="http://www.huffingtonpost.com/2012/03/01/urban-outfitters-st-patricks-day-clothes-_n_1313242.html" target="_hplink">Urban Outfitters</a>)

Irish Yoga Trucker Hat

Surprisingly, the offensive St. Patrick's Day-themed items have not been pulled from Urban Outfitters' shelves, even when this trucker cap outraged Irish and Irish-American people. (<a href="http://www.huffingtonpost.com/2012/03/01/urban-outfitters-st-patricks-day-clothes-_n_1313242.html" target="_hplink">Urban Outfitters</a>)

Jewish Star T-Shirt

In April 2012, Urban Outfitters angered the Jewish community by selling a $100 shirt that critics said mimicked the design of star patches Jewish people were forced to wear during the Holocaust. (<a href="http://www.huffingtonpost.com/2012/04/20/urban-outfitters-jewish-star-tshirt_n_1441731.html?ref=style " target="_hplink">Urban Outfitters</a>)

I Heart Destination Necklaces

In May 2011, an independent jewelry designer accused Urban Outfitters of stealing her designs. She wrote on her blog: "I understand that they are a business, but it's not cool to completely rip off an independent designer's work." Urban pulled the collection. (<a href="http://imakeshinythings.tumblr.com/post/5855716317/not-cool-urban-outfitters-not-cool" target="_hplink">I Make Shiny Things</a>)

I Support Same Sex Marriage T-Shirts-

Amidst the dealings of Proposition 8 in 2008, Urban Outfitters began selling shirts that said, "I Support Same-Sex Marriage." The shirts were pulled a week later. (Courtesy photo)
Amidst the dealings of Proposition 8 in 2008, Urban Outfitters began selling shirts that said, "I Support Same-Sex Marriage." The shirts were pulled a week later. (Courtesy photo)

Hailey Clauson T-Shirt

Model Hailey Clauson posed for photographer Jason Lee Parry when she was just 15-years old. Parry released this photo of Clausen to Urban Outfitters, which he had agreed not to release when the young model's agency complained about the salacious nature of the "crotch shot" pose. The photo became a t-shirt and Clauson sued Urban Outfitters and Parry for damaging her reputation. (Courtesy photo)

Ghettopoly

In 2003, Urban Outfitters began selling a Monopoly knockoff called Ghettopoly, complete with "Hustle" bonus cards and "Smitty's XXX Peep Show." The game angered the African-American community and Rev. Glenn Wilson of Philadelphia called for a boycott, saying, "There's no way that game could be taken in any way other than that this man had racist intent in marketing it." (Courtesy photo)

Vote For Vodka & USA Drinking Team T-Shirts

Although Urban Outfitter's biggest demographic is 18-24 year-olds, the company is selling shirts that encourage underage drinking. Jan Withers, national president of Mother's Against Drunk Driving (MADD) says, "Kids shouldn't be wearing these t-shirts...Marketing [alcohol-related products] to teens is not in any way acceptable." (<a href="http://www.huffingtonpost.com/2012/08/28/urban-outfitters-drinking-t-shirts_n_1836859.html?utm_hp_ref=style" target="_hplink">Urban Outfitters</a>)