By Katie Little, Special to CNBC NEW YORK ( CNBC) -- Millennials are shelling out big bucks on their hunt for value and fashion-forward items, and retailers are noticing as they pounce on the opportunity to capture this burgeoning market. On Wednesday, Macy's M ( M)became the latest retailer to hone in on the spending potential of the Millennials, the country's largest and most diverse generation. The department store chain outlined its multi-year plan to grow and develop its business among shoppers between the ages of 13 and 30 years old. This group is increasingly drawing the eye of retailers as the older Baby Boomer generation shifts its spending to necessary purchases and retirement savings at the expense of more discretionary items.
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Implementing a fashion-focused strategy is retailers' best bet for capturing the consumer dollar, said Catherine Moellering, executive vice president ofThe Tobe Report, a fashion retail consulting firm. Although focusing on fashion is risky for retailers because they have to get the trend right, it could boost store profits because customers are more likely to pay full price for items that incorporate the latest trends, she said. "I would argue that these fashion items, in this new reality that we're in, have a higher profitability," Moellering added. --Written by Katie Little at CNBC.