Urban Outfitters’ Move To Sell The NES Classic Edition Is A Calculated Business Decision; The Sales Impact Of Mini NES Nostalgia Marketing

By Tony Park - 06 Dec '16 09:53AM

Five days ago, leading American clothing retailer Urban Outfitters made a surprise announcement that it is selling the Nintendo NES Classic Edition online on December 6, Tuesday. This has perplexed the gaming community due to the company's reputation as a trendy retailer for the fashion set.

Urban Outfitters follows Toys R Us for stocking the NES Classic to satiate the uber demand for the 2016's hottest gadget. Launched on November 11, 2016, the Mini NES was totally wiped out few minutes after it hit the shelves of retailers such as Target, GameStop, Walmart, and Toys R Us. Thousands lined for hours to snag an item and many were left empty-handed.

As reported by Forbes magazine, the Mini NES Classic Edition was sold out everywhere. Amazon US and its UK branch had completely sold through their stock. Some shoppers even camped outside the stores of retailers with the hope of purchasing a piece of the retro gaming system.

So why is the fashion retailer Urban Outfitters cashing on the nostalgic NES Classic? According to financial planner Schaeffers' Investment Research, the clothing store aims to tap consumers' affinity for nostalgia that might help the company's performance in the stock market. This affinity advantage may also help Urban Outfitters shake off a price-target cut to $31 from $34 by J.P. Morgan Securities.

Nintendo chose to resurrect the formerly retired NES Classic Edition and made a cash cow out of it. Retailers also benefited from the unprecedented demand for the gaming console. Even scalpers and resellers made more by commanding ridiculously inflated prices.

Urban Outfitters posted an earnings slide just ahead of Black Friday. The NES Classic Edition strategy is brilliant and is timely due to the unending demand for the gadget. Nostalgia has become an increasingly popular way for brands to connect with consumers, so Urban Outfitters is poised to make money from stocking the Mini NES.