Sunday, July 18, 2004

Teens shopping more at discount stores

By VALERIE WHITNEY
NEWS-JOURNAL BUSINESS WRITER

DAYTONA BEACH — When 16-year-old Shantel Reed wants to buy a new pair of athletic shoes, she visits one of the specialty shoe retailers at Volusia Mall.

But, for jeans or shorts, she is more likely to visit a local Wal-Mart Supercenter.

"I like anywhere that has cute outfits but reasonable prices," the local teen said during a recent interview.

A new report shows the powerful teen market segment is looking more for value along with style.

"Teens today are displaying their interests in value shopping as they set new fashion trends, such as wearing upper-end products with lower-end product," said Marshal Cohen, chief industry analyst with The NPD Group, a New York-based marketing information company.

The company´s latest report titled, "Buying Habits of Teens and Tweens," shows today´s teenagers are spending much of their money at mass merchandisers instead of trendy mall retailers.

"Teens are still shopping at both specialty stores and department stores for status items. They are, for example, wearing full-price shoes from Nordstrom with jeans from Target," Cohen said, about the implications of the report released in March.

The NPD report stated teens on average spend about $50 a week on clothes, music and entertainment.

But, another report stated it could be twice as much.

Teenage Research Unlimited said its survey shows teens between ages 12 and 19 spent an average of $103 per week last year, including money they earned from a job and cash they received from other sources such as gifts, odd jobs and parents.

The Illinois-based market-research firm estimated teens spent $175 billion in 2003, or 3 percent more than in 2002.

"Thanks to its unique circumstances -- a great deal of disposable income paired with fewer recurring debts -- the teen segment tends to have a much bolder attitude toward spending than does the general population," said Michael Wood, company president, in a press release accompanying the report.

Size availability and style apparently outweigh brand name among teen shoppers. Ninety-four percent of teenagers said finding the right size is the most important factor when it comes to choosing a retailer, according to the NPD report.

At the same time, 75 percent of teens said they look for the lowest prices and 73 percent said they waited for sales.

"It is amazing how many more (teens) you see at Target than at the Gap," said C. Britt Beemer, founder and chairman of America´s Research Group, a marketing strategy firm in Charleston, S.C., that studies consumer behavior.

Teens may not be as price conscious as their parents but more are looking at prices, Beemer said in a recent telephone interview.

"More and more, Target has the stuff that fits their lifestyle," said Beemer, who surveys teens several times a year.

"At one time people got everything at the GAP. Now, maybe they get one item there," he said.

Gap Inc., the largest apparel chain in the country, recently reported disappointing sales for June. Sales reportedly sank 2 percent, the first decrease in 21 months, according to the Bloomberg business wire.

Target, the second largest discounter, reported a 2.3 percent increase in sales in June, Bloomburg said. The Minneapolis-based retailer predicts sales this month will increase between 1 percent and 2 percent.

But the big discount chains are not garnering all of the teen shoppers.

Sixteen-year-old DeAngilo Irven of Daytona Beach likes shopping at d.e.m.o., an offshoot of Pacific Sunwear of California that features hip-hop inspired urban fashions. The company targets young men and women with name-brand clothing including Billabong, JNCO and Quiksilver among others.

A Quiksilver brand T-shirt sells for about $19 while Cartell Cargo pants, one of the hottest sellers, has a price tag of $52.50

"They have the best outfits but they are high. I go there (d.e.m.o.) for the shirts. The pants are too costly," Irven said during a recent interview at Mainland High School following football practice.

Irven usually goes shopping during back-to-school season, at Christmas and for his birthday.

Many girls, on the other hand, shop more often. They also are more likely to travel farther to look for clothes. Area resident Daiserae Theodore, for example, thinks nothing of shopping trips to Orlando, Miami and Jacksonville.

Jessica Whittington, 17, and Alicia Bass, 16, shop weekly and for them price doesn´t seem to be as much a concern. The three girls also were interviewed at Mainland High.

Whittington said her favorite stores are Abercrombie & Fitch, American Eagle Outfitters and the Gap. "I like the way those clothes fit me," she said.

The regular price for jeans at American Eagle Outfitter ranges from $39.50 to $48 a pair.

Among teenagers interviewed at Volusia Mall, Brent Kinsey, 16, counted Maui Nix, a local chain that sells surfing attire, among his favorite retailers.

"I only go to department stores if I am looking for something nice for a special occasion," Kinsey.

Fifteen-year-old Joyann Jacobs said she likes specialty shops such Rave and the Body Shop as well as the traditional department stores -- Sears and JCPenney -- found in the mall.

"They have nice clothes there," Jacobs said about the department stores. "It is not always about style," she said.

Lois Huff, senior vice president with Retail Forward, said today´s teens have more shopping options than earlier generations and they make the best of it.

"There is a lot of trading up and trading down," Huff said in a recent telephone interview. Because they are such style- and trend-driven consumers, teens will search high and low for those pieces of apparel they consider the most indispensable for the best price, she said.

On the flip side, they readily buy inexpensive basic items such as undergarments or socks that don´t necessarily make a fashion statement.

Items deemed as "must-haves" this summer include cheap flip-flops, colorful tank tops, short skirts, sneakers, sports shirts and navel-baring jeans, according to an article on teen fashion at Money.cnn.com.

"Clothing is not as much an investment for them as older consumers," said Huff, whose firm specializes in retail and consumer product marketing.

In deed, "cheap chic" and "fast fashions" are two of the buzzwords that teens use in referring to their purchases, she said.

Teen Shopper Profile

Size availability - The No. 1 factor that drives teens to stores.

About $50 - The average amount of money teens spend per week.

Allowance - The No. 1 source where teens get their money.

College - The No. 1 item teens are saving for.

Clothing - The No. 1 item purchased by or for a teen.

SOURCE: The NPD Group/NPD Fashionworld/Buying Habits of Teens and Tweens

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