Dive Brief:
- Urban Outfitters announced a new store concept dubbed On Rotation, according to a Wednesday press release. Featuring “lounge-style” in-store installations, the retailer is partnering with brands to foster discovery, specifically for Gen Z.
- Nike is the first On Rotation partner. A curated assortment of over 150 apparel and footwear items from the brand will be in-store and online. Future partnerships will focus on fashion, lifestyle and design.
- On Rotation will debut in New York; Washington, D.C.; Scottsdale, Arizona; and San Diego and Manhattan Beach, California.
Dive Insight:
Urban Outfitters is making strides in experiential retail, starting with Nike.
"Urban Outfitters has always been a destination for discovery, especially for Gen Z, who are expressive, engaged, and intentional in how they shop and show up,” Cyntia Leo, head of brand marketing and communications at Urban Outfitters, said in a statement. “Nike is the ideal first partner to bring this vision to life. Their cultural credibility is unmatched, and their legacy of innovation continues to set the pace."
The On Rotation concept was created with Gen Z in mind, and Urban Outfitters will pick other brands to partner with that appeal to the generation.
Nike continues to be the favorite footwear and apparel brand of teens, according to a recent Piper Sandler survey. However, Nike has been losing ground among the cohort in recent years.
The partnership with Urban Outfitters comes as Nike is trying to reestablish relationships with its wholesalers. The athletics company acknowledged missteps in its strategy when it began pulling back on those partnerships and has been working to build them out once again.
“Partnering with Nike must feel like a world-class experience,” Nike CEO Elliott Hill recently said on an earnings call. The brand reported that revenue in the third quarter fell 9% year over year to $11.3 billion. Its DTC business was down 12% while wholesale decreased 7%.
Urban Outfitters will report its Q1 earnings on Wednesday.
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