Product controversies
Urban Outfitters' products have been the subject of multiple controversies, particularly concerning religious and ethnic issues.
- In 2003 the company released a Monopoly parody called Ghettopoly. The game was criticized as racist by a local chapter of the NAACP[11] and black clergy, among others.[12] The creator of the game, David Chang, maintained the games are "a medium to bring together in laughter," adding, "If we can't laugh at ourselves... we'll continue to live in blame and bitterness."[12]
- Also in 2003, a T-shirt released with the phrase "Everyone Loves a Jewish Girl" surrounded by dollar signs was condemned,[13] though theAnti-Defamation League welcomed the decision to discontinue the shirts, saying that it hoped "that this experience, combined with another recent controversy surrounding an Urban Outfitters product that reinforced stereotypes, has served to sensitize the company to the sensibilities of its customer base and all ethnic groups."[14] The ADL later expressed "outrage and disgust" at other incidents of insensitivity.[15]
- The following year, in 2004 Jesus Dress Up, a game created by artist Normal Bob Smith, drew additional critical response.[16][17] The company allegedly received feedback from an estimated 250,000 emails.[18] Urban Outfitters noted that the magnets, which had been their sixth most popular Christmas toy,[19] were not intended to offend, but rather appeal to their customers' diversity. Urban Outfitters no longer markets the game.[20]
- In 2006, the retailer was criticized [21] for offering sparkly handgun-shaped Christmas ornaments in its hometown of Philadelphia, a city that had seen over 1,700 shootings and over 300 gun-related murders for the year.[22] After the murder of officer Charles Cassidy, the company announced on November 15, 2007 that it would no longer sell the gun-shaped ornament.[23]
- In 2007, complaints by Jewish groups over the company sales of keffiyehs (which had been marketed as "antiwar" scarves)[24] led Urban Outfitters to stop carrying that item.[25] Urban Outfitters issued a statement, "Due to the sensitive nature of this item, we will no longer offer it for sale. We apologize if we offended anyone, this was by no means our intention."[24]
- In May 2008, after concern in the Jewish community, Urban Outfitters discontinued a T-shirt that featured a Palestinian child holding anAK-47 over the word "Victimized". According to a company representative, "[W]e do not buy items to provoke controversy or to intentionally offend. We have pulled this item in all of our locations and will no longer be selling it online either."[26]
- In May 2010, The Village Voice published an article comparing various local Brooklyn artists merchandise to products sold later by Urban Outfitters, claiming they have been stealing people's work and designs.[27]
- In June 2010, the company was criticized for having made a controversial tee-shirt saying "Eat Less". Some people considered it as pro-anorexia tee-shirt.[28] The tee-shirt was eventually pulled from the website but it was still sold in stores.[29]
- In May 2011, Stephanie "Stevie" Koerner, a designer who owns an online store on Etsy, claimed that Urban Outfitters' "I Heart Destination" necklaces were stolen from her "United World Of Love", which both featured metal chain necklaces of various states with heart shaped holes punched in.[30] Blogger April Winchell investigated and discovered that the necklaces featured a common design which a number of other artists, both on and outside of Etsy, had been selling for at least a year prior to Koerner's first sale. Additionally, Winchell drew attention to a commenter's discovery of another instance in which Koerner had claimed credit for a design that was not originally hers.[31] Nevertheless, Urban Outfitters removed the product from their online store.[32]
- In 2011, the Navajo Nation sent a a cease-and-desist letter to Urban Outfitters, demanding that the company stop using the term "Navajo" for a line of products that include underwear and a liquor flask. The tribe holds at least 10 trademarks on their name and alleges the company of trademark violation and criticism of the product.[33] On October 19, 2011, Urban Outfitters removed the word "Navajo" from product names on its website.[34].
Customer base and merchandise
Urban Outfitters has been described as selling hip, kitschy, and ironic merchandise, for example, T-shirts emblazoned with the words "Jive Turkey" or "Atari".[4] They are known for catering to "hipster" culture and fashion, which incorporates an influence from past decades. According to their website, Urban Outfitters' "established ability to understand our customers and connect with them on an emotional level is the reason for our success." The site says that "the reason for this success is that our brands... are both compelling and distinct. Each brand chooses a particular customer segment, and once chosen, sets out to create sustainable points of distinction with that segment" and that "the emphasis is on creativity. Our goal is to offer a product assortment and an environment so compelling and distinctive that the customer feels an empathetic connection to the brand and is persuaded to buy." [5]
Urban Outfitters seeks to create "a differential shopping experience, which creates an emotional bond with the 18 to 30 year old target customer we serve."[6] In 2009, it agreed to sell limited editions of Polaroid ONE600 instant cameras and Type 779 instant film in partnership with the Austrian entrepreneur Florian Kaps, who acquired the rights to manufacture 700 copies of the defunct product.[7]
| Revenue |  US$1.83 Billion (FY 2009)[2] |
|---|---|
| Operating income | US$311 Million (FY 2009)[2] |
| Net income | US$199 Million (FY 2009)[2] |
| Total assets | US$1.33 Billion (FY 2009)[3] |
| Total equity | US$1.05 Billion (FY 2009)[3] |
| Employees | 25,000 (2011) Including outside of US. |
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