American Apparel, the newest clothing store on Mill Avenue and the first of its kind in Arizona, views the nearby Urban Outfitters as more a partner than a competitor.
Tacee Webb, project manager for American Apparel said the company -- which opened in Los Angeles two years ago and is known for its basic, solid-colored clothing -- usually seeks out locations near Urban Outfitters stores.
"Urban [Outfitters] is looking at going in locations with us and vice versa," Webb said. "We complement each other without competing."
Ruth Bolton, a professor and marketing chair in the W. P. Carey School of Business, said this is a common marketing tactic called the "gravity retail model."
The idea of the model is to bring attractive retail stores to a certain area to draw larger crowds in.
"Once there's more attractive things around it, the pie doesn't get smaller -- it actually expands," Bolton said. "Like a mall, they put a bunch of stores together, and it draws people in. On Mill, there's a cluster of stores, so it will attract more people from greater distances."
Bolton said Urban Outfitters can help American Apparel because it attracts a similar demographic. But the two stores would have to bring in enough people to share.
"The kind of people that are shopping in that area are potential customers, but they have to make sure there are enough to support both stores," Bolton said.
Webb, the American Apparel project manager, said while the two stores have similarities, they each bring in slightly different demographics.
"Urban Outfitters is probably more limited to a younger crowd, but that's why they have their sister store Anthropologie, for the older age group," Webb said. "American Apparel covers both of those age groups."
Melissa Palmarez, a psychology senior, said she regularly shops at Urban Outfitters, and she plans to check out American Apparel.
"I haven't been to American Apparel yet," Palmarez said. "I probably will within the next few weeks."
Palmarez doesn't think the new store opening will affect business because the two stores offer different products.
"They're so different," she said. "It seems like American Apparel is more basics and Urban Outfitters is more trendy."
Webb said what sets American Apparel apart from other retailers is its broad appeal and its mission of being an alternative to sweat shops -- everything at American Apparel is made in Los Angeles.
"It's a great, solid product that will flow with whatever you want to wear," Webb said. "It has big universal appeal."
Webb said the company plans to open their Arizona second location on Scottsdale and Camelback roads in less than two years.
Reach the reporter at beth.cochran@asu.edu.
