Why Is Urban Outfitters buying an Italian food chain?

Urban Outfitters (URBN) wants to sell you grungy hipster outfits and authentic Italian pizza.

The Philadelphia-based retailer said Monday that it will acquire The Vetri Family restaurant group, also based in Philadelphia, with an eye toward helping the business expand.

The restaurant group was founded by Marc Vetri, an Italian-trained, James Beard award-winning chef. His restaurants include Osteria, Vetri Ristorante and Pizzeria Vetri, which was named by Food & Wine as one of the best pizza places in the U.S.

At test Target cafes, hot dogs out, salads in

Urban Outfitters, which operates 240 eponymous stores, as well as the Anthropologie and Free People brands, sees an opportunity to expand Pizzeria Vetri in particular, said CEO Richard Hayne, citing rapid expansion in spending on casual dining.

While the retail company didn't say anything about integrating the restaurants with its stores, it has already dabbled in mixing shopping with food and drinks. The company operates three locations of what it calls Urban Outfitters' Spaces, in Brooklyn, Austin and Los Angeles, which combine retail, dining, artists collaborations, music and events in one place.

The news comes as other retailers experiment with combining shopping and dining concepts. Target made headlines over the summer when it applied for a Consumption on Premises liquor license for a Chicago store. The store opened last month with an outpost of the Starbucks Evenings concept, where the menu includes wine and craft beer along with small plates.

Target is also testing an upgraded cafe concept in select stores as part of its strategy to become a destination for health and wellness.

A Chicago Target store could serve liquor when it opens in October