Retail’s New Blueprint to the Millennial Mindset
As the largest generation group in the U.S., the Millennial consumer has always been a power player when it comes to retail. The highly researched cohort became a sort of media darling of its own, discussed antidotally for consumer behaviors including preferences for shopping online and budget consciousness. Today’s Millennial, however, looks significantly different than the one reported on even five years ago — and as their lives take on new meaning, retailers’ approach will need to account for the new Millennial blueprint.
“Millennials are adapting to a new life stage,” said Kristen Classi-Zummo, executive director and apparel industry adviser at Circana. “They are getting married, buying homes and raising families. These pivotal shifts have transformed their spending habits, shopping preferences and purchasing decisions, particularly within the apparel market.”
More from WWD
EXCLUSIVE: Rosie Assoulin Debuts Lower-priced Core Styles Within Spring 2025 Collection
The 10 Best Fashion Caps That Turn Bad Hair Days Into a Style Statement
Delivering Good Honors Abbey Doneger, Joyce Brown and John Pomerantz at Annual Fundraiser
Millennials continue to make up the largest share of apparel spend, but they are also driving declines. Millennials account for 36 percent of apparel spending, which equates to $86.5 billion over the past 12 months. However, Millennials are pulling back on apparel spending with sales falling 5 percent, or $4.28 billion, compared to the prior year.
Classi-Zummo said that these “new financial responsibilities from milestones like homeownership are stretching their budgets thin.” And as a result, data is showing apparel loses market share to other industries, such as home improvement, as Millennials prioritize their changing lifestyles.
Though while the Millennial consumer became a bit “distracted” by other categories as adulting became a reality, Circana’s data reveals encouraging signs of renewed spending in apparel. So, how does the apparel industry grow when Millennials are leading a declining market? Classi-Zummo said there is opportunity. Overall, the apparel industry must adapt to Millennials’ evolving needs.
“This generation seeks comfort and versatility in their wardrobe, while demanding convenience and value from brands and retailers,” she said. “Successful brands are aligning with these core Millennial priorities. Specialty retailers, previously challenged by declining mall traffic, are experiencing a revival as they cater to Millennials’ timeless taste at attractive price points. Off-price retailers continue to thrive, as the treasure hunt mentality aligns perfectly with Millennials’ desire to score a great deal.”
Innovation is crucial for capturing Millennials’ attention and increasing wallet share in apparel. “The beauty industry serves as an excellent model, consistently surprising and delighting consumers with new offerings that spark joy. It’s no wonder beauty continues to gain wallet share across demographics, particularly among Millennials.”
For Millennials, with maturity comes an evolved wardrobe that takes into account classic styles, preferences learned in pandemic and new lifestyles to embrace “polished comfort.” What’s clear is that Millennials are charting their own course in fashion. “While rejecting the aging patterns of their Boomer parents, they’re also not chasing ephemeral trends like Gen Z. Millennials are gravitating toward a polished, functional wardrobe that seamlessly blends comfort with style,” Classi-Zummo said.
To better understand how brands and retailers can meet Millennials where they are, WWD and Circana partnered on an exclusive report that serves as a blueprint for the mindset of today’s Millennial consumer. Here are the results:
The new Millennial wardrobe is polished comfort: The active apparel category reins supreme for Millennials, with more than 30 percent of activewear purchased by Millennials. Millennials spend 1.6-times as much as Gen Z and 1.8 as much as Gen X on activewear. Sweatshirts are the top item bought and worn by this cohort who are also leaning into an overall polished yet comfortable look by pulling together items including camisoles, sportscoats and shapewear.
Best of WWD
Sign up for WWD's Newsletter. For the latest news, follow us on Facebook, Twitter, and Instagram.
