The back-to-school shopping season is right around the corner and with teen spending up, analysts believe the age group will be in the stores well before they hit the books.
According to Christine Chen, specialty retail analyst at Needham & Co. LLC, a San Francisco-based investment firm, stores like Abercrombie & Fitch, Aéropostale and Hollister are stocked with trend-right merchandise that will entice teens.
"Last year it was really the more popular, fashion-oriented girls picking up the skinny jeans and baby-doll styles," Chen explained. "But this year it's everywhere and it seems to be the new uniform for teens."
Chen said that on the negative end, gas prices remain high, but with many of their parents paying to fill their tanks and minimum wages rising, teens will continue to have money to spend.
"The rise in minimum wage has a huge impact on the teen customer," she said. "I know that retailers aren't seeing this as a good thing since they have to pay their employees more money, but for teens, this will give them more money to spend on the three things they love to spend on — food, entertainment and clothing. I think that in the end, retailers will see that the minimum wage hike is a good thing."
That said, teens are consistently looking to buy affordable merchandise, hoping to stretch their money as far as it will go. But the cash is there. According to a survey conducted by MarketResearch.com, the teen population has a total income of $80 billion, and parents spend an additional $110 billion annually on their teen children.
A new survey done by Burson-Marsteller, a New York-based marketing and public relations firm, said teens are big spenders on everything from food and beverages to music and apparel. The company surveyed kids aged 10 to 18 — called "youth-fluentials," or the popular, influencing teens. The survey looked into where and why the age group makes certain purchases.
"Affordability is most important," said Ame Wadler, chief strategic officer at Burson-Marsteller. "Of course the fashion has to be there, but they are most likely to spend their money on items that fit within their own budgets."
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