Talking With…Urban Outfitters CEO Glen Senk

August 17th, 2010 by Margaret Case Little, Communications Manager

Posted in Events | Marketing | Retail Companies | Social Media

Big things are happening at Urban Outfitters, Inc., the company which heads brands like
Anthropologie, Free People and of course the namesake Urban Outfitters. When I say ‘big’, I could
be referencing a first quarter company profit increase of 72%, a one-year-old mobile commerce
effort, or a brand with one of the highest per-square-foot revenue rates in retail. And there could
be a multitude of reasons why URBN seems to be having a spectacular year, but the overarching
theme of success at the company seems to be attributed to creativity first.

In light of the company’s success, we reached out to CEO Glen Senk for our next Talking With…
profile. In the Q&A, Senk touches on how social media is changing word-of-mouth advertising,
which retail brands he finds inspiring, and the key to staying profitable in a shaky economy.

Glen Senk, CEO of Urban Outfitters, Inc.

Urban Outfitters, Inc. isn’t just one brand – it’s five brands that represent fashion, home
goods and even garden under one large umbrella. What are the benefits and challenges
of representing so many diverse brands?

The benefit is the diversity – I’m constantly inspired by the evolving and distinct voices in our
company. Each brand is different, and compelling, and changing, and that keeps things very fresh
and always interesting.

Of course, with diversity comes complexity, and it is a challenge to help each brand grow
simultaneously in a way that’s specifically right for them and their customer. But that exact
challenge is also what makes my job so fun.

During your keynote at Shop.org’s Annual Summit in September, you’ll talk about about
how your company uses technologies to reach consumers in all channels. Can you offer
one or two nuggets in advance that you’ll be discussing?

I’ll plan to talk about our evolution as a company – that is, how we started as a bricks and mortar
operation and the process by which we entered new channels. I’ll also talk about why we value
multichannel retailing, what it means to our customer, and I’ll dive into the operational philosophy
that connects our stores, catalog, and web into one seamless user experience.
 What are your opinions on social media and how – or if – it’s changing the game for
retailers?

Social networking is word of mouth on steroids. Can you control word of mouth? It’s almost
impossible. But we believe that if we do our job, if we’re constantly focused on wowing our
customer, then we shouldn’t have to worry about controlling what he or she blogs or tweets or
reviews or posts about us on Facebook.

Now, social media is a relatively new phenomenon and it does take some getting used to – for a
long time, marketing was something that was thoughtfully crafted and carefully controlled. That
approach still exists today, of course, but the web has created a degree of transparency that gives
much more power to the consumer. As a company that loves its customer and values his and her
opinion, we welcome that change enthusiastically.

A recent report by Forbes stated that revenue per square foot for Anthropologie stores
has historically been one of the highest in the industry. What’s the secret to your
success?

Although it’s a statistic I’m very proud of, we don’t go about it as a goal. Rather, we focus our
energies on the customer experience: innovating, making beautiful products, really pushing the
limits of our brand expression and constantly refining how we operate. Revenue per square foot is
the result of that focus, rather than the starting point or motivation.

As a multichannel CEO, what’s your best piece of advice for managing the customer
relationship at each touchpoint: in store, on the web and through communication
channels?

The most important thing is to always put the customer first, regardless of the channel. As the
CEO, it’s critical to communicate our values and our philosophy so that the information cascades to
the individuals within each channel who actively engage in a dialog with the customer.

The recession has hit some retailers very hard, but in the first quarter of 2010, URBN 
posted a 72% profit increase. From a management perspective, what changes have you
made throughout the past year that speak for the increase?

I think the key is that we hire people who embrace change. So when economic conditions
necessitated fast, strategic maneuvering, everyone pulled together in remarkable fashion and
exercised the financial discipline and creativity necessary to operate responsibly while continuing
to amaze our customers.

We made changes to our inventory composition on a dime; we challenged our design, production,
and buying teams to create styles our customer couldn’t help but fall in love with – we leveraged
every facet of our business to streamline all of our processes, but also to let loose creatively.
Everyone pitched in and, as a result, we more than weathered the storm, we flourished.

Which retail companies or other retail executives do you look to for inspiration?

I’m impressed with Apple’s inventiveness and aesthetic, Trader Joe’s originality, Amazon’s ease of
use, Chanel’s commitment to beauty, and 1st Dibs user experience and product assortment.

I’ve read about a few recent design ventures that Urban Outfitters is undertaking
including Space 15 Twenty, “a collaborative space where fashion, art and music collide.”
You’ve also made changes to an Upper West Side store featuring the old school look of
New York City retail. Talk about the concept behind these two ventures.

Part of the Urban Outfitters appeal, today and historically, is that no two stores are alike. We
believe in change and we believe in honoring what’s special about a given geography or city. To a
large extent, that’s precisely what those two store concepts are about: keeping things fresh,
unique, unexpected, and right for where they are and what customers we hope will walk through
the door.
 What keeps you up at night?

I actually sleep pretty well, but this is a business in a constant state of change, and that kind of
movement is, for me, a real source of excitement. So if I am awake at night, it’s likely because I’m
excited about some new idea, or plan, or hire, rather than anxious.

What word do you hope comes to mind when customers think of the URBN customer
experience?

Our customer base is so eclectic, as are our brands; it’s hard to pick a single word that I’d imagine
every customer would associate with us. But I would hope that customers would describe us as
genuine, engaged, smart, customer centric, personalized, and creative.

What’s the best piece of advice you can offer to someone beginning a career in retail?

Become indispensable, take risks, stay humble, and learn every aspect of the business.