Teen spending hit its lowest ranges in twenty years, in accordance with a brand new survey, as teenagers spent much less cash on meals, live shows and occasions throughout the coronavirus pandemic, and fear in regards to the economic system getting worse.
Teenagers reported spending about $2,150 this yr, in accordance with Piper Sandler’s 40th biannual “Taking Inventory with Teenagers” report. That is a drop of about 9% yr over yr. Reported annual spending by teenagers peaked at about $3,023 within the spring of 2006.
Piper Sandler surveyed 9,800 customers with a median age slightly below 16 from 48 states, with a median family earnings of $67,500. The survey, launched Tuesday, was carried out between Aug. 19 and Sept. 22.
Attire spending got here in at about $507 per teen per yr, down 11% from final fall. Females, on common, are spending about $160 extra on garments than males, the survey mentioned.
Teenagers reported spending simply $87 on purses, an all-time low, Piper Sandler mentioned. LVMH’s Louis Vuitton beat Michael Kors this time for the No. 1 spot. Spending on purses and clutch baggage peaked within the spring of 2006, when teenagers mentioned they spent $197 yearly on the class, in accordance with the survey. However its reputation has been fading since.
In relation to attire, Nike stored its prime spot — a place it has now held in Piper Sandler’s survey for a decade. American Eagle was second, adopted by Adidas — with each manufacturers holding their earlier positions on the record. The athletic attire maker Lululemon, although, moved as much as No. 6 from No. 7 a yr in the past, with its snug leggings and sports activities bras gaining in reputation. Quick-fashion chain H&M moved up, whereas Perpetually 21 dropped on the record. L Manufacturers’ Victoria’s Secret, recognized for its racy lingerie, fell to No. 22 from No. 13 a yr in the past.
Throughout the attire class, looking for second-hand objects is gaining some momentum amongst teenagers, stealing market share from conventional gamers, particularly off-price retailers like TJ Maxx and malls. Forty-six p.c of teenagers have bought objects second-hand, from platforms like Poshmark and The RealReal, whereas 58% have offered objects on a second-hand market, Piper Sandler discovered. Thrift/consignment shops ranked No. 13 as teenagers’ favourite model or retailer throughout the fall, in contrast with a rank of No. 44 a yr in the past.
Nike was additionally teenagers’ favourite footwear model, adopted by VF Corp.’s Vans in second and Adidas in third.
Footwear spending got here in at $275 per teen per yr, down 6% from a yr earlier, Piper Sandler mentioned. Males reported spending about $50 extra, on common, on sneakers than females.
The e-commerce behemoth Amazon additionally remained teenagers’ favourite web site, with 54% of teenagers saying Amazon is their No. 1 on-line procuring vacation spot, up from 52% a yr earlier. And 90% of teenagers mentioned they have been procuring on-line throughout the fall.
Meantime, solely 33% of teenagers reported procuring at malls and specialty retail shops, down from 36% a yr earlier. A handful of division retailer chains together with J.C. Penney, Stage Shops and Neiman Marcus filed for chapter safety throughout the pandemic. Lord & Taylor, the oldest division retailer operator within the nation, is within the technique of liquidating.
Although general meals spenjding declined, males nonetheless commit probably the most, or 21%, of their wallets to meals, in accordance with the survey. That is adopted by video video games and clothes. Females commit probably the most, or 27%, of their wallets to clothes, adopted by meals and private care.
And with a worldwide well being disaster that has precipitated a recession hanging over their heads, probably placing their dad and mom or themselves out of labor, 48% of teenagers mentioned they consider the economic system is getting worse, in contrast with 32% a yr in the past.