Previously a mainstay of millennials, Philadelphia-based Urban Outfitters is struggling to keep up with the youth and their jeans preferences, writes Chloe Berger for Fortune.
The retailer is planning to court younger suburbanites and college students by focusing more on denim, loungewear, and recently work-approved athleisure.
“Our segment has seen rapid and seismic shifts as the generational passage from Millennial to Gen Z occurred amidst a global pandemic,” said Shea Jensen, president of Urban Outfitters, North America. “As these shifts occurred and a new generation began coming of age, we lost focus on our customer, and we lost track on how to win with them in today’s dynamic retail environment.”
Urban Outfitters is also trying to recover from a loss of repeat customers, as it has already reported a decline in retention rates along with slowing retail sales in July and August.
Meanwhile, the company’s parent, URBN, saw its sales increase by 6 percent to a record $1.4 billion, with four of its five brands performing well, the exception being Urban Outfitters.
However, Jensen asserted that “the brand is not fundamentally broken,” and noted that the retailer is confident its strategic pivot will be successful.
Read more about Urban Outfitters trying to keep up with younger generational fashion trends in Fortune.
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