Urban Outfitters

Break-Even and Sales per Square Foot Analyses

Leslie Davis Burns

Business Case
Source: Bloomsbury Fashion Business Cases
DOI: 10.5040/9781474208765.0011
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Urban Outfitters is a lifestyle retailer that offers an eclectic mix of merchandise and experiences in their more than 200 retail stores in the United States, Canada, and Europe. A merchandiser for Urban Outfitters has become aware of a new product category, fair trade artisan baskets, as a possible addition to their offerings. Two calculations used by the merchandiser to decide whether or not to add this product category are break-even analysis (quantity sold and time needed for the stores to break even) and sales per square foot analysis (to compare with current offerings). Students are provided with data necessary to calculate break-even and sales per square foot analyses for the fair trade artisan baskets and make a recommendation as to whether Urban Outfitters should add this product category to their merchandise mix.

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