After a disappointing quarter for Anthropologie that saw same-store sales slip 7%, parent company Urban Outfitters has announced several leadership changes that will take effect on November 15.
Former Under Armour President David W. McCreight will become the Chief Executive Officer of the Anthropologie Group. In this role Mr. McCreight will oversee Anthropologie both in the United States and Europe, plus wedding concept BHLDN. The Co-President positions have been killed; Wendy Wurtzberger will stay at Anthropologie as Chief Merchandising and Design Officer while Wendy McDevitt will become president of Terrain. Kristen Norris, the Managing Director of BHLDN, will become the Chief Creative Officer for the Anthropologie Group.
Urban Outfitters CEO Glen Senk had this to say:
“The creation of the Group CEO role streamlines our organization structure and is pivotal in the development of our multi-brand growth strategy. We’re excited to welcome the broad-based skills and tremendous track records of David and Chad [who has joined Urban Outfitters as Chief Merchandising Officer]. At the same time, we’re delighted to recognize the strength of our organization and the opportunity it affords Wendy, Kristin, Denise and Wendy to extend their leadership capabilities.”
Analysts expect that customers will begin to see the result of these changes in late Q3 of 2012. Urban Outfitters will hold its quarterly earnings call next week.
In addition to his position at Under Armour, McCreight previously served as President of Lands’ End from 2005 to 2008. I am interested to see what he will do in his new appointment. I am happy to see Ms. Wurtzberger stay on with Anthropologie since she oversaw many of my favorite seasons. And I wish Ms. McDevitt much success at Terrain and will miss her presence as an Anthropologie exec.
It’s been interesting to track Anthropologie’s slide. The company did remarkably well during the recession, posting consecutive quarterly gains when many other women’s apparel companies were suffering losses. But as the recession has dragged on Anthropologie has not adapted well to the changing customer landscape. The decision to edge towards trendier designs in 2009-10 to attract a new audience to the store backfired, and the decision to bring in new sourcing for production has resulted in poor quality clothing made from poor quality materials. Since Spring 2010 Anthropologie has curiously been incorporating more runway trends into its designs, often finding itself too far ahead of the curve for much of the country and not able to compete against luxury retailers in the fashion-forward urban centers.
The last two collections (Spring and Fall 2011) have shown some promising design inspiration but lack the cohesiveness and whimsical nature that Anthropologie once defined itself by. Customers remain somewhat puzzled by ever-increasing price points while the materials have shown little improvement. For Fall 2011 more organic fabrics have been used but Anthropologie has struggled to balance the customer outcry for these fabrics against their high cost due to market factors. The clothing remains mostly shapeless with sometime indefensible length and cut choices. Prints have shown drastic improvement but Anthropologie stubbornly sticks with some patterns that are not resonating with customers as they’re released in new shapeless designs season after season.
When candidates interview for a job at an Anthropologie store, two questions come up no matter which store you interview at: who is the Anthropologie customer and what is your favorite thing about Anthropologie? The company’s leadership team needs to continually ask these questions until they’ve landed on solid footing. The team has taken many steps forward with the Fall 2011 collection. The color palette for the collection is stunning and some of the pieces recapture the intoxicating allure that makes a $350 dress justifiable. To keep forward progress the team’s challenge is to encourage original designs and keep collections consistent from beginning of season to end. Each season should tell a story. I used to be able to sum up each season’s Anthropologie collection in 4 or 5 words. These days collections are hard to define, period.
Anthropologie needs to stop trying to be trendy. What I see on the runways is not what I go to Anthropologie to buy. I go to Anthropologie to buy feminine, romantic pieces with a twist. Muddy brown bell bottom corduroy flares are fun to wear every now and then, but they’re not romantic.
Anthropologie needs to ensure they’re maintaining an appealing design aesthetic and following the production process through from design to execution to mass production. Too many items I’ve tried on recently have left me wondering if anyone at Anthro’s offices tried on the design. Too low-cut, poorly fit, unflattering pieces do the customers no favors and affect Anthropologie’s bottom line.
I still consider Anthro my favorite store and only want to see the brand continue to succeed and flourish. I hope that these moves yield positive results that leave me with an amazing closet of whimsical pieces I adore.
Further reading:
Urban Outfitters, Inc. Announces New Leadership at Anthropologie, Terrain and Urban Outfitters
Urban Outfitter installs new head of Anthropologie [sic]
Urban Outfitters’ Sales Disappoint on Struggling Anthropologie Unit
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