Search »

Lackluster Teen Spending Indicates ‘Discretionary Recession’

Though fashion still accounts for 41 percent of the total teen budget, total teen spending in the category declined nearly 20 percent year over year, pointing to a “discretionary recession,” according to the 15th semi-annual “Taking Stock With Teens” study by Piper Jaffray, MarketingCharts reports.

“We’re currently in the ‘transition phase’ of the fashion cycle and believe that we have not yet hit bottom,” said Jeff Klinefelter, Piper Jaffray senior retail research analyst.

Compared with last year’s study, young men spent 15 percent less on discretionary items (fashion, beauty and personal care, home furnishing, video game, digital media and restaurant categories); young women spent 11 percent less.

Key findings from the survey:

• The top five brands, ranked by mindshare, among all students in the school survey:
  • Hollister - also “most preferred” among girls only
  • West Coast Brands (Pacific Sunwear, Volcom, Quicksilver, Zumiez) - the favorite among boys only
  • American Eagle
  • Abercrombie & Fitch
  • Forever 21
• In home furnishings, IKEA was the top choice among teens, followed by Pottery Barn/PB Teen.
• Electronics spend increased 7 percent overall (up from 6 percent last year) representing 10 percent of total budget for young men and 4 percent for young women.
• Teenage boys are spending more than last year in the videogame system category (13 percent vs. 9 percent last fall); teen girls are spending more in the beauty category.

MarketingCharts has some more findings on digital music, food and beverages, and spending by parents.