Teens take stock of spending

In what they term a “discretionary recession”, Piper Jaffray notes that although the fashion category still represents a 41% of total teen budget it is low compared with previous years. And it would appear the decline hasn’t yet finished.

“We‘re currently in the ‘transition phase’ of the fashion cycle and believe that we have not yet hit bottom,” said Jeff Klinefelter, senior retail research analyst, Piper Jaffray. “The current economic challenges are impacting consumers at all income levels and ages, indicated by the historic low level of average planned spending in the fashion category this spring.”

Boys cut back more with a 15% YoY decline versus an 11% YoY decline for girls.

Despite the drop in spending, the top five favourite brands among teens remain largely unchanged. Hollister remains top followed by West Coast Brands, American Eagle, Abercrombie & Fitch and Forever 21.

Tags: consumer spending, fashion, recession, teens