How teenagers are reshaping the retail industry
Sorry, Abercrombie. Business of Fashion is reporting that thanks to a change in the way this generation's teenagers are shopping, many stores based in malls across the country stand to suffer a drastic decline of sales.
Here's the thing, teens don't go to their local mall to hang out anymore. Remember when that used to be the highlight of your week? Mom drops you off and will come get you a few hours later. Meanwhile you strut around the mall with your friends, popping in to all-American stores like American Eagle, Abercrombie & Fitch and Aeropostale, and flirt with your crush at the food court. With the onslaught of technology and smart phones, teens now spend more time socializing on the internet and their phones than they do in public spaces like a mall. 60% of millennial shoppers use their smartphones to browse products.
And as such, they're purchasing more online and less in-store. According to Business of Fashion, "The chains' shares also are lagging other retailers in 2013, with Abercrombie, American Eagle and Aeropostale all down more than 20 percent through Nov. 8, while the Standard & Poor's 500 Retailing Index has gained 36 percent."
So why is this happening? Other than the increase in technology use among young people, they also have less money to spend. Unemployment rates are up among teens aged 16-19, at 22.2% in October 2013, and has been above 20% since 2009. Parents also aren't able to help as much, and so everyone cuts back on unnecessary items. Trendy, fashionable clothes aren't expensive when you visit places like Forever 21, H&M or Brandy Melville.
And finally, finally, people are revolting against wearing garments with brand names across their chest (or worse, backside)! Why spend $40 on a tee with a brand's name on it, when you can get a trendy piece from Brandy Melville for $20? (Business of Fashion)
Click through above to see some of our favorite trendy pieces, all under $50!