Teen Fashion Survey Indicates “Discretionary Recession”

Sector Expertise

Teen Retail Survey Indicates "Discretionary Recession" in Fashion Spending

Total teen spending on fashion declined nearly 20 percent on a year-to-year basis, indicating a "discretionary recession," according to the 15th semi-annual "Taking Stock With Teens" research survey released April 8, 2008. The study, conducted by senior retail research analyst Jeff Klinefelter and the retail research team, tracks the purchasing behavior and brand preferences of teenagers across the United States.

"We're currently in the 'transition phase' of the fashion cycle and believe that we have not yet hit bottom," said Klinefelter. "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."

Key findings from the survey include the following:

  • While the fashion category represents 41 percent of the total teen budget in the spring 2008 survey and teenagers continue to spend a significant amount of money in this category, the Piper Jaffray retail research team notes this budget allocation is low compared with the past several years.
  • The top five brands among all students in the school survey remain largely unchanged from last fall. Hollister remains the No. 1 preferred brand by teens, as ranked by mindshare, followed by West Coast Brands (e.g. Pacific Sunwear, Volcom, Quicksilver, Zumiez), American Eagle, Abercrombie & Fitch and Forever 21.
  • Piper Jaffray also polled more than 75 parents on the amount they spend on themselves and their teens. The retail research team found that parents are spending less on their teens, as the survey results indicated parents' annual spending on teen apparel totaled $883 versus $1,487 in the spring 2007 survey - a 41 percent decline on a year-over-year basis. In addition, the survey results show parents' annual spending on their apparel was down 24 percent from last year, totaling $952 versus $1,249 last spring.

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