In an August earnings call, Urban Outfitters announced one of its main concerns: keeping up with the kids of today who aren’t as down to wear ‘90s-grunge inspired garb. Previously a mainstay of millennials, the retailer has seemingly found itself lagging behind. Now, it wants to court younger suburbanites and pre- and post-collegiates with more focus on denim, loungewear, and newly 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,” Shea Jensen, president of Urban Outfitters, North America said. “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.” 

The lifestyle retail chain behind bohemian-inspired brands with hefty price tags such as Anthropolgie and Free People is reeling not just from a lack of new customers but a loss of repeat ones—citing a decline in retention rates and slowing retail sales in July and August. 

“Over time, Urban Outfitters has lost its charm,” said Jessica Ramírez, senior research analyst at Jane Hali & Associates, noting that the store has not had “a good streak in some time.” The mall mainstay was known for its quality and fun lifestyle pieces and now it’s not “the place you would go to anymore for trends,” she added.

When it comes to the passage of time and modern trend cycles, there’s a blink-and-you’ll-miss-it mentality. And Urban Outfitters, which built its name on “an aspirational 22-year-old customer living in major metropolitan cities,” just admitted to taking its finger off the trend-conscious pulse of that demographic a bit during lockdown. 

“Urban Outfitters has always been for the young adult and college-aged consumer,” Jensen wrote in a statement to Fortune, adding that it is “evolving our brand with a clear strategic plan designed to meet the needs of the diverse Gen Z audience, expanding our reach across pre-college, college, and post-college segments while tailoring our assortment to meet their evolving tastes, sizes, and occasions.” 

The parent URBN sales grew by 6% to a record $1.4 billion, and four out of five brands “performed remarkably well,” the company told investors. That excludes Urban Outfitters, a brand appearing to go through its awkward phase, as same-store sales declined by 9.3% in the quarter, a significant drop that led to the new turnaround plan. On the other hand, Free People’s lifestyle denim brand has been surging since last year and Anthropologie is expected to reach $3 billion in sales via an expanded lineup and customer base. 

Still, Jensen asserts “the brand is not fundamentally broken,” and claims the boho chic retail company is confident in its strategic pivot. Outlining a five-pillar strategy and a desire to stabilize business, Urban Outfitters is doubling down and “gain[ing] a solid understanding of young consumers.” The brand recognizes that the cohort “is significantly different than the Millennial generation before them: from size, ethnicity, tastes and occasions, to how they view and interact with the world,” per Jensen’s comments in the earnings call.

Sub-Urban Outfitters? 

Urban Outfitters shunning the first part of its name for the ‘burbs is perhaps not all that surprising. Abercrombie and Fitch successfully launched a rebrand, noted CNN, although it looked to a more senior clientele and in need of workwear. “There’s a lot of migration going on and retailers are having to follow those patterns,” noted Ramírez. “Younger generations have been priced out in bigger cities.”

Part of this shift includes “pivoting from our traditionally ‘alternative’ sensibility,” said Urban Outfitters. At one point the retailer had a premium on vintage with their recycled line, but with the rise of both curated and non-curated thrifting amongst Gen Z, the look can be found elsewhere. “That market has gotten very competitive,” says Ramírez. 

The issue isn’t just generational. “I think they lost their secret sauce some time ago,” Ramírez says of Urban Outfitters, noting anecdotally that the quality has gone down. Gen Zers are smart shoppers with a lot of tools at their disposal and they often shop direct-to-consumer brands, she explained.

The retailer has noted that their “product assortment has unintentionally become too narrow in price, occasion, and sensibility.” In response, the brand outlined a new sale recently with the marketing tag “We heard you. We were a lot.” But not everyone is buying it, as some take to social media to note that promotions don’t seem as good as advertised.

But in terms of some brands that have courted younger generations successfully, Lululemon, Shein, American Eagle, and Levi’s stand out as big names, said Ramírez. That’s all to say, buyers of any age are willing to spend when they believe the product is an investment. 

“Even though the consumer is strapped for cash, they’re very laser focused,” Ramírez said, adding that more heritage brands like Levi’s and Ralph Lauren have succeeded by focusing on quality. 

Calling Urban Outfitrer’s predicament “self-inflicted,” Ramírez said modern brands must always iterate and respond to the retail state of play. If “you just stay there, that will come back down the line and hurt you. You do have to continue to evolve and I don’t think Urban Outfitters did. It’s outdated.”