It seems that times are so bad that even teenagers are having to tighten their belts. Best known for their overabundance of time and disposable income, teens are being hit by a combination of lack of jobs and increased prices. Bad news for retailers who depend on their purchases.
Teens forced to bite the bullet on spending, too
They’re among the last group of consumers cutting back
— Houston Chronicle2
The financial pressures of adults are finally catching up with American teenagers. Since summer jobs dried up, gasoline prices topped $4 a gallon and parents ran out of spare cash, teens have had to cool it on spending for clothes.
Retailers dependent on that group are feeling the pinch. First-quarter net income at American Eagle plunged 44 percent because of discounting, and the retailer may post its first annual profit drop in five years. Same-store sales have fallen for the past two quarters. At Gap’s Old Navy chain, sales in May were off 25 percent from a year earlier. Abercrombie’s same-store sales dropped in five of the past six quarters.
2 = article may expire in a few weeks.