Urban Outfitters Admits Struggle to Connect with Gen Z
Urban Outfitters has candidly admitted during its recent earnings call that it does not know how to market to the demographic that made it a household name—Gen Z. The company, popular among young adults for its alternative and vintage-inspired fashion, has come to this realization the hard way.
Selling oversized jeans alone will not suffice to captivate Gen Z. Urban Outfitters is now embarking on a transformation, aiming to replicate the successes of competitors like Abercrombie & Fitch. The brand recognized its missteps, particularly in failing to adapt to the “rapid and significant changes” between millennials and Gen Z during the pandemic.
Jensen, of Urban Outfitters in North America, remarked in an August earnings call, “As these shifts took place and a new generation began to come of age, we lost sight of our customer and how to engage with them in today’s ever-evolving retail landscape.” This oversight has led to the company struggling to attract new Gen Z consumers while simultaneously losing its millennial base.
Urban Outfitters, part of a larger group that includes Anthropologie, Free People, and the rental service Nuuly, experienced a 9.3% decline in sales during the second quarter of 2024. This downturn is particularly concerning as the overall group reported a 6% increase in total sales, reaching $3.5 billion in the second quarter.
