Changing Tastes are Catching Businesses Off Guard

Changing Tastes are Catching Businesses Off Guard

Today some of the biggest names in retail are struggling to understand the quirks of the millennial generation, a critical customer base.

McDonald’s has lagged in the trend toward “fast-casual” dining (e.g. Chipotle Mexican Grill, Corner Bakery) that offers healthier ingredients and highly customizable meal options. The chain’s dropping appeal with younger consumers may have contributed to recent sales declines.

Meanwhile, Abercrombie and Fitch’s sales have dropped as it adjusts to the fast-fashion trend of “cheaper, unmarked gear that [teens] can use to put together their own individual styles.”

The companies have put in place new strategies to counteract the declines, including market-research, pricing, and cost-cutting efforts, but it remains to be seen whether these will be enough after the fact.

What will you do to ensure you won’t be caught off-guard by your customers’ changing tastes?