Retailers fear teen spending tumble
Posted: July 02, 2008, 2:00 PM by DrewHasselback
The teen market is an indispensable component of the retail business, particularly the apparel sector. In the 12 months ended April 30, teens accounted for 14% of the roughly US$192-billion that was spent on clothes.
U.S. retailers are therefore concerned that a growing number of teenagers is planning to slow down spending in the face of a poor summer jobs market, higher gas prices, and parents with dustier wallets, Bloomberg reports.
A survey of 5,000 teens conducted by Piper Jaffray in April found that they expect to spend an average $1,183 on fashion this year, down 19% from last year and down 23% from 2006.
"While we believe the teen customer has slightly more discretionary income than their parents, they're still impacted by the sluggish economy," said Richard Brooks, CEO of Zumiez Inc., in a recent conference call. Zumiez's 309 stores selling skateboarding and beach clothes. In May, the retailer reported its first quarterly profit drop since going public in 2005.
Primary causes? Is it maybe that the jobs that teens would have are going to adults who are desperate for a job? I'm from Michigan, and I'm pretty sure the economy is worse hear than the rest of the country so I see that happen. Also, could it be that more kids are going to college therefore having less money?
i drive a honda spree so i dont worry about gas, just how i plan on efficiently strapping my board to the rear mount. I never really shop at places like that anyways so i guess i am only supporting the downfall in zummies sales
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did somebody say hills?
Quote:
Originally Posted by Steve Ignorant
All I have to do is make eye contact with a girl, and her bra unsnaps and her pants fall to her ankles.
Location: buying used stuff off of SF, so i can look "gnar" with my pre-thrashed gear
Age: 21
Posts: 4,398
Re: trouble with teens...not dropping the $$$
kids can't find jobs -> kids can't buy stuff -> stores aren't making the money -> stores can't hire kids to work -> kids can't find jobs -> kids can't buy stuff -> stores aren't making the money -> stores can't hire kids to work -> kids can't find...oh, you get the picture
kids can't find jobs -> kids can't buy stuff -> stores aren't making the money -> stores can't hire kids to work -> kids can't find jobs -> kids can't buy stuff -> stores aren't making the money -> stores can't hire kids to work -> kids can't find...oh, you get the picture
So, what I think you're saying is that kids can't find jobs -> kids can't buy stuff -> stores aren't making the money -> stores can't hire kids to work -> kids can't find jobs -> kids can't buy stuff -> stores aren't making the money -> stores can't hire kids to work -> kids can't find jobs. Right?
trouble with teens...not dropping the $$$
