Roulston Retail Partner Dick Seesel on the Recent Shakeup at Urban Outfitters

Last week Urban Outfitters announced that CEO Glen Senk had resigned to pursue other opportunities and that founder Richard Hayne would be taking over immediately. The news came after net income at the Urban Outfitters decreased four quarters in a row and the stock took a big hit after the announcement. Investors perceived that Richard Hayne is not the right fit to lead the company long-term into the new and changing retail environment. Dick states, “It’s obviously a period of uncertainty for Urban, not just because of its recent sales performance but also because of a failed transition at the top of the company. It’s also hard to say whether Mr. Hayne is in place as a transitional figure before turning over the reins, or plans to stick around for awhile.” This has happened at other companies in the past since it is challenging for a founder to find a suitable successor. It is unclear at the moment how the change will affect Urban’s strategy moving into the coming years with it’s two top brands (Urban Outfitters and Anthropologie) struggling to adapt to the new and changing industry trends where competitors have had more success. Dick explains, “Without knowing the internal politics at URBN, it’s clear that the company is losing share in an environment where many other junior/trend retailers are doing well.” To read the full posting please visit http://retailinginfocus.wordpress.com/2012/01/16/un-changing-of-the-guard-at-urban/.

Richard Seesel is the Manager and owner of Retailing In Focus, LLC. He was most recently a Senior Vice President and Divisional Merchandise Manager at Kohl’s Department Stores. Dick is proud to have helped Kohl’s grow from 18 stores to a national retail powerhouse, during an era of change and consolidation throughout the retail industry.