What: Shares of apparel retailer Urban Outfitters (NASDAQ:URBN) slumped on Monday ahead of the company’s third quarter earnings report.
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Urban Outfitters just announced an unexpected acquisition – it’s buying a group of popular Italian restaurants rooted in its hometown of Philadelphia, including a gourmet pizza chain.
The restaurant serves Neapolitan pizza from its custom-built oven, such as the marinara which comes equipped with oregano, crushed san marzano tomatoes, garlic and olive oil.
Sales in the broader retail industry remain sluggish – partly because of a slowdown in foot traffic at United States malls – and that’s weighed on Urban Outfitters’ stock.
Urban Outfitters also pointed out that within two years of opening his eponymous restaurant in Philadelphia, Marc Vetri was named one of Food & Wine’s Ten Best New Chefs, and that recently Food and Wine Magazine named Pizzeria Vetri the best Pizza restaurant in America.
Marc Vetri said in a statement that it’s a “perfect match”.
Urban Outfitters has made other moves to diversify its operations.
“URBN and the Vetri Family share the same singular goal, we pride ourselves on bringing the best possible experience to our customer and community”, he said.
Both companies are based in Philadelphia’s Navy Yard.
Chef Vetri and his partners are spending their Monday making the rounds to meet with their employees at all of the restaurants.
According to Eater, Vetri is among a number of chefs who are working with the clothing chain, particularly at new concept spaces. “It has been integrating restaurants into its stores for several years, calling them” lifestyle centres”.
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Urban Outfitters, in particular, has been testing the idea for a few years in a variety of locations. Target applied for a Consumption on Premises liquor license this summer for a store set to open in Chicago last month and is also testing an upgraded cafe concept in select stores as part of its strategy to become a destination for health and wellness.
