How Chico's Appeals to Younger Consumers Without Really Trying

Most shoppers likely associate Chico's with baby boomers and Generation X, given the company's marketing frequently features immaculately groomed models over the age of 30. But you may be surprised to learn the apparel retailer has been steadily gaining a following among millennials and Gen Z. In fact, the average age of its shoppers has declined by about a decade, Kimberly Grabel, svp of marketing at Chico's, told Adweek. Still your mother's Chico's According to the retailer, this downward trend in age is more or less a happy accident as a few pandemic-era trends converge. "We’re not thinking about age at all. I think it’s more about the younger generation's rejection of fast fashion," Grabel explained. "This is not a case of us targeting a younger customer." French Fashion Retailer Runs Campaign to Empower Women Without Featuring Any of Its Clothing Grabel noted that the pandemic has spurred people to rethink which brands are right for them, with the emergence of sustainability as an issue pushing women to seek out more durable items. Consumers have also been open to trying new things as their priorities changed. Indeed, younger generations are in some cases discovering Chico's not online or in its physical locations, but in thrift stores such as Goodwill, which the retailer has observed on social media platforms such as TikTok, Facebook and Instagram. But they're also shopping direct. "We are getting a younger customer because we are focused on being true to our brand," Grabel said. "And at this moment in time, beautiful, high quality product that has some fun print and color to it, but fits in a comfortable way, is appealing to people across the age spectrum." Generational divide One of the nods Chico's has made to changing times and a younger customer is investing more heavily in digital, particularly social shopping. The retailer built its own studio to create stories for Facebook Live and Instagram that are interactive and focused on product demonstrations, such as showing how clothing might be styled or suggesting specific occasions for its outfits. "This trend validates that age is not a factor for women today in deciding how they want to dress and express themselves," a spokesperson added. "The same item may be loved by customers of very different ages—what’s fun is that they tend to style it very differently." Janet Kloppenburg, president of JJK Research Associates, which provides sell-side research to institutional investors, agreed Chico’s is well-positioned to attract younger consumers, as its clothing infuses more comfort into stylish pieces. This age trend should pay off for the retailer. That's because Kloppenburg said millennial women spend more than older generations, so lowering the average age to somewhere in the early to mid-40s from a customer between the ages of 50 and 65 would bolster its growth. Chico's success was recently reflected in its second quarter results, during which the brand's net sales increased almost 59% versus the same period a year prior to about $220 million from nearly $140 million. Foot traffic at the chain is also holding steady compared to before the pandemic in 2019, and was up by 2.4% in July, according to data analytics provider Placer.ai. "The overall visits trended closely with the wider retail category, yet the limited nature of the visit gap for Chico’s alongside the heights hit in the summer speak to the potential for an exceptional holiday season should Covid cases continue to decline," said Ethan Chernofsky, Placer.ai's vp of marketing. 'Making an entrance' Grabel said the trend has held up as the retailer heads into the holiday season. An upcoming campaign, which was created in-house, will include the tagline "Make an entrance." "[It] really goes to who the Chico's customer is," Grabel said. "She is a confident woman who likes to be the best dressed in the room and likes to make an entrance." The campaign includes a range of women from their 30s to 60s. Kloppenburg also noted Chico's October catalogue featured younger models than previous marketing materials. "The purpose of the campaign is to show the age versatility of the brand," according to a spokesperson. This messaging will appear on store windows, with images of models dressed in a range of colors and styles to appeal to consumers preparing for holiday celebrations. "We think there's absolutely going to be a return to more festive dressing again," Grabel said. "We haven't had to get dressed up for anything in such a long time." Gap Becomes the Latest Retailer to Acquire Virtual Try-On Tech