Retailers Hope To Hook The Elusive Millennial

The holiday shopping season was a huge indicator of fourth-quarter success for several U.S. firms, but many have admitted they failed to capture the attention of one of the largest segments of the market— millennials.

According to the Pew Research Center, Americans under 35 make up the largest age demographic of the nation's workforce, and their earning power is continuously growing, cited the Wall Street Journal. That means they are a huge part of most retailers' target markets, but capturing their attention has been challenging.

Different Values

Millennials have proven frugal with their cash and unwilling to spend on things like clothing and other physical items, opting instead for experiences like going out to restaurants or taking trips. This has been problematic for stores like Macy's, Inc. M, which reported a decline in existing store sales over the holiday period.

Related Link: Millennials And Black Friday: Is There A Misunderstanding?

How To Cope

In order to attract the elusive Millennial, many companies are opening discount versions of their larger stores in hopes of pulling in cash-conscious millennials. Whole Foods Market, Inc. WFM is one such store planning to create a smaller, cheaper version of its grocery store specifically targeting Millennials.

Winning With Millennials

Stores like TJX Companies Inc TJX's TJ Maxx and Nordstrom, Inc. JWN;s Nordstrom Rack have been successful in keeping Millennials interested, as their discount prices for designer goods represent a cash saving strategy that the generation is interested in.

Amazon.com, Inc. AMZN is another retailer that has been successful among Millennials due to its ease of use and low prices. Online shopping has become increasingly popular, especially among Millennials, so many brick and mortar stores are working to make their online experience easier to use and more accessible.