The big business of dorm decor with Urban Outfitters

It’s the second-highest category after electronics, and some data suggests it’s growing: Research from CTV ad platform MNTN last year shows that advertisers in dorm-adjacent categories saw average revenue grow 73.65 year over year during the peak purchase window in July.

One of the companies at the center of these trends is Urban Outfitters, which has made a concerted effort to grow its furnishings business in recent years. The company’s head of merchandising for non-apparel, Karen Booker, joined special projects editor Melissa Daniels on the Modern Retail Podcast this week to dive into how the company has evolved in this space.

Here’s a rundown of their conversation.

Positioning bedding as a hero category

One of the biggest areas that Urban Outfitters has focused on improving this year is bedding. Booker said it’s the hero category, given the central role it plays in a small dorm room.

This year, the team took into account customer feedback from last year to ensure that bedding was more comfortable and versatile. It added softer, new fabrics and new prints and patterns, she said.

“It’s the hero of their personal space, particularly in these new dorm areas, which are pretty small,” she said. “So, they have to be functional, but also, they want to self-express and have somewhere that’s comfortable and somewhere that perhaps has some nostalgia, as well, that reminds them of home.”

Balancing price and aesthetics

Booker said one key aspect to putting together the dorm collection this year was paying attention to accessible price points, while still keeping in mind that the Gen-Z customer has highly creative and stylish taste.

This year, leaning into floral prints and nostalgia-tinged items helped achieve that balance. She said there’s been a surge of popularity in photography, both equipment and frames, that helps tap into affordable self-expression. Other items aim to marry form and function, like jewelry and beauty storage solutions that look sleek on display.

“The Gen Z consumer is really smart and very stylish and very creative. So it is a challenge, but also a delight, to be able to try and figure out what we can do to serve that at an accessible price but also [ensure] great quality,” she said.

Mastering the art of trendspotting

One of the biggest challenges for any brand that caters to Gen Z is staying ahead of trends. Booker said the company taps over 27,000 ambassadors through its Urban Outfitters Insiders program, who can participate in questionnaires and market research. She’s also a keen reader of customer reviews and Reddit. “It’s really an authentic place where the community who are really passionate about a certain product or a certain brand will have really robust conversations,” she said.

This year, the company specifically leaned into the hype around “bed parties,” which have become a popular way for students to announce where they’re going to college. The company did more throw pillows, accent decor and licensed gear to meet the trend, Booker said.

“This was a new initiative that we had this year, and it was just so much fun. And the engagement that we had from customers and consumers, and just parents and students, was really amazing to see. And that’s what delights me personally about the Gen Z consumer is that there’s always something new, and we just have to move with the times,” she said.