September 18, 2013
Will You Have a Cocktail With Those Jeans?
Conventional thinking would suggest that if you operate a store that caters to younger consumers — many younger than 21 — it wouldn’t make sense to seek permission to sell alcohol. Of course, if you’re Urban Outfitters, conventional thinking is probably not what you’re going for.
According to several reports, the chain has a liquor license pending for a new store it is opening in the Williamsburg section of Brooklyn, NY.
"Do we really want people drunk when they are buying their skinny jeans and ironic t-shirts," said City Councilman Stephen Levin in a statement published by the New York Daily News.
Crain’s first reported on Urban Outfitter’s plans back in March, although the story went largely unnoticed. That report said the company was looking to include a restaurant on the premise with plans to serve alcohol.
Bloomberg News reported last year on two Urban Outfitters Terrain stores that merged fashion with a restaurant. Other Urban Outfitters include sandwich shops and cafeteria-style cafes.
Wendy McDevitt, president of Terrain, told Bloomberg that consumers who visit the stores’ restaurants spend twice as much time shopping as other customers.
"The one thing you can’t get in the cyberworld is the tactile experience and that won’t go away," Ms. McDevitt said. "Food is becoming bigger and bigger in terms of entertainment value."
Chains have had to get creative to make it in Williamsburg, an area known for its eclectic mix of independent shops. A couple of years back, Walgreens’ Duane Reade opened a beer bar where adults could fill up growlers to take home. Based on a Racked report, local residents are not very excited about the prospect of getting an Urban Outfitters or its sister Anthropologie.
- Chain Clothing Store’s Liquor License Application Raises Eyebrows in Williamsburg – New York Daily News
- Williamsburg Reacts to News of an Impending Urban Outfitters – Racked
- Oh No: Plans for Williamsburg’s First Urban Outfitters Include a Restaurant and Bar – Grub Street
- Duane Reade Taps Into Beer Business With Growler Bars, Plans To Expand Concept – Shanken News Daily
- Urban Outfitters Serves Striped Bass in Bid for Shoppers – Bloomberg News
BrainTrust
Recent Discussions
Discussion Questions
What do you think of Urban Outfitters combining restaurants and bars with its clothing stores? Is this a concept that you expect other clothing stores to test?
Poll
Food and drink is comfort. It could be a restaurant and bar in your store or like my bank, which provides free coffee and cookies. IKEA does a nice job with their furniture store by providing a nice restaurant option. There are still a few department stores around with restaurants. It’s just another way to get people in the door.
Retailtainment is part of what Millennials expect with their shopping experience. Good for Urban Outfitters – it should be a differentiating asset.
One would assume food and drink to be a natural accompaniment to social shopping.
Best Buy tried a concept store with a similar theme after dozens of focus groups with drinking age gamers produced the phrase “If they sold beer, I’d never leave.” It didn’t make it – one opinion as to why being that while BBY knew a lot about games, they knew nothing about bars.
If Urban Outfitters is going to make this work, I’d suggest they put a leader from the hospitality industry in charge.
If Cracker Barrel can do it, why shouldn’t Urban Outfitters?
This will definitely be harder than it appears from an execution standpoint but if done properly, should add to the experience. Bumping against online sales has increasingly made brick & mortar retail about the experience as they try to make the absolute lowest pricing less relevant to consumers. Isn’t that what loyalty programs are about too?
Why is this a problem all of a sudden? IKEA does it. So do most B&B bookstores. The process is not that complicated or convoluted, unless there are politicians looking for a hook to hang their political hats on.
Brilliant. And to be sure, we will see more of this. As demographics age, more and more shoppers will transition to online. Be assured, as Millennials age, they will not devolve from their connection (read: need) to be online. Brick and mortar stores will evolve more and more into showrooms. The challenge will be to get shoppers into the store with something different than what is online, so the kabuki sales that we all see will no longer be effective.
And while my wife and I are not the key demographic for Urban Outfitters, I could sit and have a beer or two while she shopped. And, if she asked for a little more time, would I not acquiesce?
I think it’s a great idea. McDevitt is spot on in her comment that this is a way to give consumers a reason to go to a brick and mortar store. Having spent plenty of time in Europe, I also think that Americans are too uptight in their views on alcohol. Most hipsters living in Williamsburg are out of college and over 21.
Having an appropriate F&B offer in retail has long been a great strategy for increasing dwell time and customer engagement. However, most fail at this because the expertise to run F&B is far different than running retail. If you are going to do it, make sure the concept fits with the branding of the retailer, and hire an expert to run it.
Interesting concept. Yes it has been done by other various types of retailers, but typically success has come in locations with larger formats that attract a broader customer base. It will be interesting to see the mix between customer and those that just stopped by for a drink.
If it’s successful, others will certainly try it.
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Food and drink is comfort. It could be a restaurant and bar in your store or like my bank, which provides free coffee and cookies. IKEA does a nice job with their furniture store by providing a nice restaurant option. There are still a few department stores around with restaurants. It’s just another way to get people in the door.
Retailtainment is part of what Millennials expect with their shopping experience. Good for Urban Outfitters – it should be a differentiating asset.
One would assume food and drink to be a natural accompaniment to social shopping.
Best Buy tried a concept store with a similar theme after dozens of focus groups with drinking age gamers produced the phrase “If they sold beer, I’d never leave.” It didn’t make it – one opinion as to why being that while BBY knew a lot about games, they knew nothing about bars.
If Urban Outfitters is going to make this work, I’d suggest they put a leader from the hospitality industry in charge.
If Cracker Barrel can do it, why shouldn’t Urban Outfitters?
This will definitely be harder than it appears from an execution standpoint but if done properly, should add to the experience. Bumping against online sales has increasingly made brick & mortar retail about the experience as they try to make the absolute lowest pricing less relevant to consumers. Isn’t that what loyalty programs are about too?
Why is this a problem all of a sudden? IKEA does it. So do most B&B bookstores. The process is not that complicated or convoluted, unless there are politicians looking for a hook to hang their political hats on.
Brilliant. And to be sure, we will see more of this. As demographics age, more and more shoppers will transition to online. Be assured, as Millennials age, they will not devolve from their connection (read: need) to be online. Brick and mortar stores will evolve more and more into showrooms. The challenge will be to get shoppers into the store with something different than what is online, so the kabuki sales that we all see will no longer be effective.
And while my wife and I are not the key demographic for Urban Outfitters, I could sit and have a beer or two while she shopped. And, if she asked for a little more time, would I not acquiesce?
I think it’s a great idea. McDevitt is spot on in her comment that this is a way to give consumers a reason to go to a brick and mortar store. Having spent plenty of time in Europe, I also think that Americans are too uptight in their views on alcohol. Most hipsters living in Williamsburg are out of college and over 21.
Having an appropriate F&B offer in retail has long been a great strategy for increasing dwell time and customer engagement. However, most fail at this because the expertise to run F&B is far different than running retail. If you are going to do it, make sure the concept fits with the branding of the retailer, and hire an expert to run it.
Interesting concept. Yes it has been done by other various types of retailers, but typically success has come in locations with larger formats that attract a broader customer base. It will be interesting to see the mix between customer and those that just stopped by for a drink.
If it’s successful, others will certainly try it.