The big business of dorm decor

0:09Hello and welcome to the Modern Retail Podcast. It's our show that covers the ways the retail industry is changing and modernizing. I'm Special Projects Editor Melissa Daniels. Back to School is always one of the biggest retail tentpole events of the year, but it seems like it's only getting bigger. This year, back to college spending is estimated to cross$100 billion for the first time, according to data from the National Retail Federation. And about$14 billion of that is estimated to be spent on dorm and apartment furnishings. That averages to be about$194 per shopper, which is the second highest spend category after electronics.

0:48So between the numbers and the many reels we're seeing on Dorm Talk, we know that we've come a long way from a Starry Nights poster, a shower caddy, and a set of extra long sheets. We've even seen headlines that some students are spending upwards of$10 ,000 on custom dorm designs, hiring interior decorators, bringing in their own pieces of furniture, bringing in wallpaper, and just really doing a whole interior design job on a dorm room. This has major effects for businesses in the decor and home space. Research from CTV ad platform Mountain from last year shows that advertisers in dorm-adjacent categories saw their average revenue grow 73.6 % year over year during the peak purchase window in July.

1:31One of the companies at the center of this trend is Urban Outfitters, which has made a concerted effort to grow its furnishing business in recent years because they know that even if students aren't spending tens of thousands of dollars on their dorm, they still want to express themselves in their new living space. To go over the strategy at UO, I am joined by Karen Booker, the head of merchandising for non-apparel to go behind the scenes on the trends this year and everything behind it. Karen, welcome to the show. Thank you so much for having me. I'm so excited to be here and talking about this amazing topic.

2:03It is so fun. It really has just blown up as a category in home and decor. And it's terrifically fun for elder millennials like myself to live vicariously through these very creative young people. Absolutely. So bring me back to, you know, your perspective here. When do you feel like dorm decor started to become a bigger category? Urban Outfitters is a lifestyle brand and retailer. We are a discovery hub. And, you know, we really focus in on the Gen Z consumer, which is such an awesome and exciting consumer. But we're really serving people who are coming of age. And definitely the dorm topic has started to resonate in a much bigger way over the last couple of years.

2:52What we've really found is our brand is really a really great way to connect with the consumer because we really want to share with them in the moments and the places that matter. And definitely that whole dorm experience is such a huge life stage for the consumer that we want to play into and really, you know, kind of be in sync with them in terms of how they're living and how they're shopping. So everything that we do really starts with the customer and And we cover national brands, we cover UO brands, we have emerging brands, and we've really tried to tailor our dorm assortment to be a one-stop shop alongside their apparel, but also have home and dorm accessories with that.

3:34I think the trends have really started to evolve, particularly with social media. You mentioned a couple of the, you know, dorm talk and a lot of the exciting things that are going on in that arena. and we've really had to move with the consumer and figure out a number of ways in which we can really speak with the consumer in a direct way, whether that's through market research or actually recently we had an internship program and it was wonderful to talk to young people who are in this amazing life stage where they're in dorms and have first-hand experience of what are the things that they're looking for, what are the solutions that they're trying to solve.

4:11So we've really been very in tune with the customers and really listening to what they want and trying to make sure that we're shifting in sync with them as these trends change. Yeah, you know, I keep going back to that word you shared, discovery, because it feels like that is a big part of this when someone's in this phase of decorating their space, self-expression. You want to feel like what you're shopping for is fun and new and special, right? Right. I'm curious, you know, when you talk to the interns, say, or the young people that are in the UO networks, you know, what are some of the reasons that you find they they want to get so serious about DORM?

4:53What's like the motivating factor here? So I think, I mean, Gen Z inherently is a really exciting consumer group that I'm really delighted to be serving. We all know that they're digitally native. We know that they also value physical retail. but one of the things that I personally most love about this generation is that they are so creative and they really value personization and self-expression and one of the things that we've really found is that they're they're very into styling so just as much as they're interested in how they're dressing themselves with their apparel and their daily outfits they also want to extend that in their personal spaces so we've really tried to take that with us and again being a lifestyle retailer, we're able to do that.

5:39We're able to offer things across that whole journey. And even, I would say, you know, for a life stage of pre-college, at college and post-college, there are different challenges that the consumer has. We found that from a dorm perspective, it's a very stressful, but also very exciting moment in their life stage where they have the strain and the stress and the financial burden of moving, often very far away from home, they're perhaps in an unfamiliar location but they're also very excited about the new person that maybe they're going to become they're going to meet new friends they're going to evolve they're going to self-express in a different way they're going to mature they maybe want to have a different route in terms of self-expression and we just want to be well there with them on that journey and trying to marry those two things of the financial burden and the stress but also this really exciting moment where they're really embracing a new stage in their life has been such an interesting thing to work through.

6:42And it just continues to evolve. I think one of the things we've definitely heard from our consumer research is also accessible pricing is important at this particular point in their life stage, but also they absolutely want amazing quality. They want things that are really delicious from a styling perspective. So we're really leaning into exclusive prints and patterns. We're really amplifying a lot of our more premium quality, particularly in bedding. But all of this is really in service to the consumer and what we've heard that they're asking for. Yeah, I would love to hear more about specifically bedding because it seems like that's emerged as a big hero category in dorm decor.

7:26You know, how are you and your team just making the most of that category this year? What are some of the types of products or types of aesthetics that you're really leaning into to deliver there? Yeah, you're absolutely right. Bedding is probably one of our largest categories. And we see that that will continue to grow over the next few years. Again, because it's the hero of their personal space, particularly in these new dorm areas, which are pretty small. So they have to be functional, but also they want to self-express and have somewhere that's comfortable and somewhere that is perhaps has some nostalgia as well that reminds them of home.

8:03So we've taken that into account with our bedding assortment. One of the key things that was really new to me, quite honestly, was one of the trends on TikTok, which I don't know if you've heard about bed parties, but it's been this amazing phenomenon that we were able to participate in this year. And it was so much fun. um so basically it's around college decision day this is where high school seniors you know make their decision about where they're going to locate from a college perspective and there is this takeover of their bedroom environment with all things college based and it's so fun and i'm sure if you've seen all the tiktoks they have balloon decorations they have all of the college bedding and snacks and all the different products and to really celebrate their success in this new opportunity.

8:57And that has been something that we've really enjoyed playing into. And this was a new initiative that we have 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 like move with the times. I think the other thing that I was really personally very obsessed with, if I'm quite honest, is we read a lot of customer reviews. So I think when a customer takes the time to write a review online and leave that feedback for us, I think it's really important that we take heed.

9:39And that is something that I really pay a lot of attention to and the same with my team as well. So we will read pretty much all of the reviews And bedding was a key category where we actually had a lot of feedback. And we were able to adapt our bedding category to that feedback. So a lot was around, you know, making sure that the bedding felt really soft, making sure that it was comfortable, making sure that it was durable and functional. So we've made some adjustments to our bedding. And I'm really proud of the evolution of our bedding category. And I just continue to see that will grow over the next few years.

10:14the other thing which again was from customer feedback was more specialty bedding so they want to make a statement and particularly for those photography moments where they're sharing with friends and family but having something that is unique was really important to our consumer so we've introduced more exclusive prints and patterns we've really amplified some of our premium bedding we've added in some new brands to our assortment and we've also really added in some special details. So that's been a really good learning for us. And one of the other things that we found from the research was reversible bedding is also a new category that we've introduced, which again was from customer feedback, where they want to be able to change their bed style as much as they want to be able to change their daily fit.

11:02So there was a lot of really robust data that we've been able to apply to the assortment. And I'm really proud of what the team has achieved. What were some of the SKUs or products that your team rolled out this year to cater to that? So we actually reset a lot of our bedding programs with new fabrics and new prints and patterns. And we spent a lot of time looking into that. So that was definitely something that was really important to us. But then also things for on top of the bed, so pillows and throws. again that kind of dressing as you would with an outfit where you wear accessories to accentuate an apparel outfit you know we see the same in a dorm room accessory as well and actually one of the bits of feedback from our intern program I was speaking to one of the ladies there and she was you know reminding me about how small the spaces are when you get into these dorm rooms there's a there's a lot that the, you know, that the customer has to do.

12:00They have to, you know, they have to work, they have to sleep, they have to socialize, they often have to share a room. So that small, small space and being able to fit a lot of things whilst also answering, I want to feel comfortable, I want to feel at home, I want to feel this is my safe space has been really important. They still want to self express, they still want to personalize that area. But actually, the small space that you've got to work in was actually a reminder to me that, you know, we've got some things to do and differently with our assortment. And even just adjusting the assortment to trends.

12:34So for example, we've brought in some jewelry storage because, you know, bangles has been a really key trend. You know, they take up quite a lot of space. You've got to have the right storage solutions for jewelry. Beauty was another category where actually from some market research we we had the feedback that customers and college students can be using up to 28 products a day just on skincare and different beauty regimes so that's a lot we have to try and find a solution in which they can store that um so that it looks cool and again it's all about the photo moment as people are getting ready so making sure that we have really nice small storage solutions for the college students that fit into these small spaces but they also look really cool and they're really functional so all of these things we're trying to take into account one of the other trends has been photography you know we all love a picture of friends and family near to where we sleep or where we live so actually frames has been another category that we've really amplified And there's a lot of nostalgia, particularly around taking Polaroid pictures or, you know, old vintage films.

13:50So that is something that we've incorporated into our assortment this year as well, just to try and have a one-stop shop and make it easy for the college student. I feel like this category is becoming a quintessential example of how you marry form and function and fashion all together because you have this very creative, astute, intentional shopper who knows exactly what they want and the look they're going for and how much they want to spend on it. and at the same time, very specific needs to meet as far as, yeah, I mean, I think I was looking it up and the average dorm is like, it's like 15 by 20 feet or something like that.

14:32Yeah, it's pretty small. 12 by 15 feet for a double room. Yeah, gosh. Okay. So yeah, you're not talking about a lot of space here. And then you're sharing that with someone often. You know, like one of the biggest things I've been seeing is just the way you loft beds, which we did back in my day, But now they're getting really clever with that and doing different things with under bed storage. I'm seeing all kinds of lighting. It's just like the aesthetic has to be there. But at the same time, you can't overload it with like furniture that just looks cool for the sake of looking cool. You don't have the space.

15:08Yeah, absolutely. Absolutely. Actually, one of our key items has been a vanity set, which has storage built in to the seat alongside the vanity unit. And then the other thing that has been really good is charging. You know, obviously, folks need to charge their devices. We actually introduced a range of headboards this year, which have the charging facility in them. And we've also noticed that rechargeable lights and lamps have definitely seen an incline as well. So all of these like nuances, we're really trying to make sure that we're amplifying and making that one place to shop for the consumer because it's tough.

15:51It's a stressful time, but we want to make it more of a fun experience. Actually, one of the new things which has been really good is we recently had a partnership with DoorDash. And that has been so successful. Again, that's a new channel for us. It's meeting customers exactly where they are. And what we found there is one of the most successful things has been output completers. So we can see from the data that when the customers are getting ready, perhaps for a night out, they realize that they need an accessory or something to complete the outfit and that's been really interesting as well we're finding um just some really just like nuances from a trend perspective that have come through um but again it's all based on the customer what they're asking for and what they want and making sure that we're in tune with that i wonder if you're going to see that carry through as we sort of we're in kind of peak move-in season here uh in mid-august you You know, if you'll see some of the more decor-based items pick up on DoorDash as people are like, oh, my God, this was perfect, except I forgot to get a pillow for here, except I need another thing of string lights.

17:00Yeah, absolutely. And making sure that we have those essentials, like you say, mattress protectors, pillows, all those things. But we also want the fun sizzle dressing that makes a space, a personal sanctuary for the individual, which is really what we're trying to be helpful with. So, yeah, it's been super exciting and such a delight to work on the assortment this year because it's so much fun. And the consumer is such an exciting customer to work with. We actually also have over 27 ,000 ambassadors who are part of our Urban Outfitters Insiders program. And they have been phenomenal. An amazing large group of customers who we can really tap into, whether it's through questionnaires, market research, focus groups.

17:52Again, just to like mine through data and try and get ahead of what the anticipation of trends will be. because it is difficult. So that's been a very good resource for us as well. Yeah, that was something I wanted to sort of talk to you about is this real challenge of staying ahead of style and trends so you can follow the retail calendar, so you can get that inventory. And realistically, it's hard to jump on these things when they can change so fast, right? So how does your team navigate that? yeah as i mentioned um we just we graze through a lot of information either from the ambassador network that i just talked about the intern program which was phenomenal um the customer reviews which i've mentioned but also this traditional merchant tools so of course we travel globally to trade shows we speak with vendors we have trend forecasting services we are all over social media um actually one channel that has been really useful and has really been amplifying for us in terms of importance is the reddit community where we enter the chat and it's really an authentic place where the community who are really passionate about a certain product or a certain brand um will have really robust conversations and it's so interesting and it's so delightful to be part of that chat where you can really get into the grassroots of what are people asking for what what are we not servicing as a retail organization that we can do a better job with so that's been phenomenal and pinterest is another channel again more for like trend inspiration but what we're really trying to do is to tap into where the customer is and have authenticism in terms of making sure that the data and the insights are you know, real and that we can service that.

19:50And at the end of the day, we've all got different algorithms on our TikTok and a lot of different social media, Instagram, et cetera. So as a team, we work really collectively together because certainly my algorithms will be different from, you know, a different person. So pooling all of that and having, you know, great team effort in engaging and having conversations and talking through what the products assortment should be has been, again, just a really great, fun experience. Yeah, that's like a critical point of any kind of curation, whether product or editorial or otherwise. This one person's feed does not a trend make.

20:29There needs to be, we need to get to get a little more global with it. But to that end, though, I'm curious, what has emerged in 2026 as some of the more popular aesthetics? Like, you know, I feel like I keep hearing this word coastal, but, you know, you mentioned nostalgia and vintage earlier. Are there certain aesthetics or patterns or prints that this year you're like, oh, wow, we nailed it with this one. This is very 2026. yeah there's definitely been some I would say more heritage prints which have been extremely popular this year so certainly polka dots and stripes are just an always-on winner with consumers in general so that has definitely been very good I would say also just unique things so we really pride ourselves at Urban Outfitters we have an in-house design team and they are brilliant at designing very stylish, very tasteful, and very unique prints and patterns.

21:32And those have been very successful as well. So particularly in the floral remit, those have been very strong. So we just continue to fine tune and we look at the data, read the reviews, and we just try and make sure that we're giving a very cohesive room decor experience for the customer so that they can really pick up everything. And it's not too hard to kind of figure out what goes together. And I think that's from an urban outfitters perspective, certainly the editorial shoots that we do with the photography are really, they're meaning to be a place of discovery and to inspire. So we really pride ourselves on that styling to make sure that the customer feels that it's easy and, you know, is again, an extension of what they're wearing is really reflected in their personal space.

22:20I think that's something where we can really win. It's so funny because I do feel like that actually resonates with what I see on my feed when I'm deep in dorm talk is like the level of sophistication and maturity and some of the design like speaks to a worldview and an aesthetic that seems much older than 18. Sometimes I'm like, wow, these are classy kids. Yeah, I mentioned before the Gen Z consumer is like really smart and very stylish and very creative. So it is both a challenge, but also a delight to be able to try and figure out like, okay, what can we do to serve that at an accessible price, but also it'd be great quality.

23:03So that's been really good fun. One of the things that we actually did last year, which was really good fun, was we actually set up dorm rooms and we had a collaboration with uo hall we had glass um trucks with these rooms set up and actually drove those trucks around new york and that was amazing to see these like live installations but again like a live inspiration for customers of all these different looks like you mentioned coastal or you know various other trends um and actually we ended up with a collaboration with cat's eye who performed a music gig as a celebration as well. But to see it live in situ was like the cherry on the top from an editorial perspective.

23:47And that was so fun. And that was such a great collaboration. We're very excited about that. Yeah, yeah, you're bringing a lot together in that IRL function of brand merchandising right now just cannot be underestimated or understated. I feel like the ability to show off your product in person, I feel like just makes it come to life in a way that all of us who are glued to our phones really sometimes need to be convinced that that is the right purchase. No, absolutely. I think, especially with Gen Z, because they are on their phones so much, they are digitally native, but they do love to see things in real life.

24:26And, you know, it's hard for us all to straddle that, but those moments of like a palate cleanser where you can just be present and see product and enjoy it. And especially the collaboration with music in this particular collaboration that we did was just so fun and so invigorating to kind of celebrate our dorm opportunity with an amazing gig at the end where everyone was just dancing and singing along. And Cats Eye are so iconic. So that was just awesome. That actually makes me think of another aspect of, you know, dorm and selling to college kids that I wanted to get your take on. And that's what this means for, you know, retention and a longer customer journey.

25:10You know, how do you stay engaged with your customer after they've made these important purchases? They're off to college. You know, do you have any other sort of follow up plans there from either a customer or an activation perspective? Yeah, absolutely. So customer acquisition is absolutely one of our company goals, as with most retailers, is to have a pipeline of customers enjoying our products. But what we're also doing is making sure that we are really giving a great treatment to our loyal customers as well. So both our active and ones that maybe haven't shopped with us for a while, we'd love to reactivate those.

25:50So that's definitely one of our key strategies is to really engage with all customers. But certainly there are peaks and troughs from a perspective from certain products. and definitely after dorm, you know, we really want to make sure that we work with the college students, but also stay with them as they perhaps leave college and perhaps start the first job. They're a young professional, maybe. They're, again, maybe looking at a new apartment. So, how can we help them through that journey? So, you know, really going from a bedroom at pre-college to then a dorm environment to then perhaps a small apartment or even a small house.

26:31I'd love to hear a little bit about what your plans are for this college back to school season that you might be doing. One thing I had noticed in your sort of product catalog was a lot of licensed college gear, you know, from some big schools. You know, how do you sort of navigate that? And, you know, are these colleges coming to you? Are you coming to them? I would love to hear a little bit about the strategy there and how that manifests. Yeah, so for the last couple of years, we've actually had some really cool connections with particular colleges. So we actually took over, I think it was Arizona, Boulder and Tennessee from memory, where we actually were really part of a lot of their activations.

27:18So, for example, Game Day, where we really was kind of sponsoring that event. we also were involved in some of the gigs and concerts and from an entertainment perspective at those colleges so we have a really nice connection with some key colleges and we wanted to expand that and we'll continue to do so in the next few years one of the key things that we really have learned into is localization as you mentioned so specific college merchandise kind of started with the decision day and the bed party idea where you decide on which college you're really proud of you want to have that moment to share with your friends and family.

27:55So creating these spirit shops has been a really new initiative for us and has been pretty good and very exciting to be able to be very personalized with what the consumer is really going through in terms of that opportunity. So that has been really fun. And then actually one thing that I can share, because I think it launched yesterday, is we've actually just done our very first dedicated back-to-school commercial, which is under the banner of All Together Now. And that was actually filmed at Rutgers University. We have about, I believe it's 10 universities where we have worked with students.

28:38They're real students. They are very talented. So it could be dancers or drum majors or creators or student athletes and also some members of the uo insider community and they've all come together and the marketing team did an amazing job on creating this brand commercial which is launched you can see it on any of the social media channels so please check that out um and we've actually created an original musical track as well so it features some of our key franchises. We have an amazing jog pan called The Harry. We have our Beck franchise, which is our athleisure wear. And it's all the students are coming together.

29:20They're dancing, they're singing, they're having fun. There's this amazing like high energy commercial and that just launched yesterday. So we're very excited. If everyone can check that out. Again, give us some feedback, but it was just so fun. It's such a fun thing to create. And again, it's just being where the students are and really embracing this moment in their very exciting life stage. Oh, I'm sure you must be learning from them all the time. So, you know, if I had, I take my average$194 in college dorm spend to Urban Outfitters, shopping for an 18-year-old who's a college freshman heading to a dorm, what are the things I'm walking out with?

30:02What are the must-haves that are going to make me look like the coolest auntie? I love that. Come join me for shopping. I would absolutely love to do that. And anyone else who's listening, of course, I can easily spend everyone's money. That's for sure. We are retail heads here, same. I would highly recommend checking out our amazing range of bedding. um we i mentioned that very proud of that assortment this year i think our chargeable headboards are a must-have for sure it is a great solution and they're so stylish so i would definitely check those out um i think i would definitely offer up a frame because i'm sure you want your own your own face in her bedroom so we definitely recommend a frame with a photo of auntie in there um and i think some sort of storage solutions so um i think something for the beauty you know as i mentioned all of that skincare is really important um so you know small storage solutions like jewelry holders are very very cool and then of course the little mini lamps that is a must-have as well so particularly the little mushroom lamps and that's been a key item.

31:20So very excited about those. And I think you would have a really nice, a really nice ambience in that bedroom for your niece. I love that. That sounds so much fun. Well, Karen Booker, thank you so much for joining us today and getting into the weeds with us on this strategy. It's such an exciting category. And, and it's great to learn from you and hear what you guys are doing to make the most of the season. Thank you so much. It's been a pleasure. So much fun talking about this. Thanks for the time.