Upscale teen retailers, such as Abercrombie & Fitch, have reported losses in sales because of the state of the economy. However, in his June 21, 2009 Time CNN article Sean Gregory reported that stores such as Buckle and Aeropostale, which cater to fourteen and seventeen year olds reported "43.5% ad 81% first quarter profits," respectively. Buckle, located in the Midwest, has little competition, and Aeropostale offers lower priced clothing, which accounted for the increases.
Employment Opportunities Decline
Teens are becoming more disciplined in their spending habits because of the recession and its effect on their parents’ income. Additionally, "35% of teens had part-time jobs this spring, " reported Jeffrey Klinefelter, equity -research analyst at Piper Jaffray. In spite of this, however, retail analysts believe this is only a trend brought on by the recession, believing that teens will spend more money when the recession is over.
"Forty-three percent of the teens surveyed" by Scarborough Research and Arbitron, Inc. stated "they spent less money on their last visit" to the mall, because "they or their parents had less money to spend," reported Jennifer Waters in her June 12, 2009 article in Market Watch. They also reported they would still shop at the mall and increase their spending when the economy improved.
Encouraging Wiser Use of Resources
In view of the economic recession, there are ways to save money which include setting limits on the amount of spending, shopping at clearance sales at major retail stores, and making clothes instead of buying them. Mothers and daughters can make clothing at a fraction of the cost of new clothing.
Many shoppers already use retail coupons, but they are gaining in popularity among the affluent eighteen to twenty-one year olds who are opting to receive them through text messages or e-mail. Kay Bachman wrote in her August 18, 2009 MediaWeek.com article that "fifty one percent are more likely to be a college graduate or have an advanced degree." This could also spur more sales for retailers.
Many teens, accustomed to having the newest trendiest clothes, may have to be encouraged to look for bargains at yard sales or quality second hand retail clothing or thrift shops. If they look carefully, they may find items which are suitable to wear. They may grow to enjoy the challenge of finding a quality piece of clothing at a discount price.
In conclusion, the economic recession has caused teens and parents to be more conservative in their spending. Accordingly, there are many ways for teens to save money on clothes during the economic recession. This may encourage them to be better shoppers in times of economic boom.
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