Many teenage apparel retailers are noticing a decrease in sales as the competition for the teenage customer’s dollar is becoming more intense.  The competition is due to an increased number of stores that are using technology.   Sometimes new technology trumps the latest in fashion for the elusive teenage consumer.  Companies like Abercrombie & Fitch, Aeropostale, and American Eagle Outfitters have been the hardest hit.  Many teenagers believe that its parents that shop at these stores now, rather than the teenager.

Although several of these companies have brought in new leadership to focus on this changing retail landscape, retail analysts don’t expect much improvement in the near future.  According to Thomson Reuters, sales at apparel stores focusing on teenagers are down 6.4% during the fourth quarter of 2013.  Analysts at Wells Fargo have wondered if the teenage consumer is walking around naked, and imply that there is “no sign of life anywhere among the traditional (teenage) players.”

So, where are these customers?  Some argue that they are going to fast-fashion companies like Forever 21 and H&M, or discount retailers like T.J. Maxx who are making a concerted effort to reach teenagers.  Online shopping might also play an important role with teenagers, as more than 75% of teenagers say they shop online.  This prevalence of online shopping also accelerates the fashion cycle making clothes “uncool” in record time.  Teenagers also have shifting priorities.  Clothing used to be the epicenter of the teenager’s identity; now, clothing might come in third after smartphones and sneakers.  Some argue that gaming systems trump everything and completely erode the dollars that a teenager has to spend on clothing.

Discussion Questions:

Why aren’t teenagers spending as much money on apparel as they have in the past?

What retailers are most affected by the decreased spending?

 

Sources: Elizabeth A. Harris, New York Times, January 31, 2014; © Pascal Broze/SuperStock