Retailers target teens to ride out recession
Filed under: Kids and Money, Shopping, Recession
Watch out! Major retailers believe they have found a "recession proof" group of shoppers -- your teenager. In a bid to avoid the closing of stores at malls nationwide, retailers are looking to capitalize on the influence teens have over household purchases. They believe that middle class teens won't feel the affects of a recession. Research shows that teens influence 90% of grocery and apparel purchases. Many stores are changing displays and using big names to lure a trend conscious younger market in their doors. The hope is that parents will come along too and buy items as well, further boosting the stores sales in an otherwise difficult time.
I see several issues with this strategy, one, which USA Today points out, is that children typically do not shop in the same stores their parents do. Call it rebellion or a strange fashion sense, but the last place most teenagers want to go is the same store their mom just bought a pantsuit at.
The second issue is, even teenagers who can't drive don't like to go shopping with their parents. Growing up, my sister and I would beg to be dropped off at the local mall with cash or mom's credit card rather than be forced to try on a plethora of clothes with mom in tow. If teens don't want to be in the same building, let alone the same store with their parents retailers will have difficulty raking in the extra impulse buys from parents.
Finally, if your teenager is influencing 90% of the grocery and apparel purchases for your household, you better be raking in the cash, because from my personal experience, teens tend to have expensive taste in clothing and food. Next time you head to the grocery store leave Johnny at home and during your next trip to the mall, show Suzy where TJ Maxx is.
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Reader Comments (Page 1 of 2)
4-19-2008 @ 9:12AM
Bobby said...
Whatever group came up with the statistic "teens influence 90% of grocery & apparel purchases is grossly misleading & flat out innacurate. Women do the largest % of spending in this country & please don't try to convince me a female is influenced by a teen 90% of the time with her purchasing power. Besides, teens are far too busy & could care less about most of the purchasing in those 2 categories.
This marketing idea won't resolve the economic down times we're experiencing right now. You can't get "blood from a turnip" (southern metaphor) & as buying power goes down the tube for millions of americans so do choices in the family structure. Nobody is immune....
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4-19-2008 @ 12:36PM
Mark said...
Keep in mind that 84% of statistics are fabricated
on the spot by more than 68% of the population
77% of the time.
4-19-2008 @ 1:22PM
glenn said...
Dear Bobby,
I agree with you 99 persent about the buying habits of the family and its influences. What I disagree about is the ref: "the blood from a turnip"
being a desendent of an english mother and born in england but raised here, I assure you the expression
is PURE English, not southern though there are some great other southren expression out there, this is not one of them. Have a great weekend. glenn warne
4-19-2008 @ 9:56AM
Mr Dew Good said...
Your Crazy Dude Do they Pay you to Write this Crap?
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4-19-2008 @ 10:00AM
Kim said...
I agree with a lot of the article. As a parent of twin 18 year old daughters, one doesn't really want to believe how much of an influence they do have. They request things that I would not buy if I didn't have teens. They want vitamin water, frozen white castle burgers, mini bagels, ugli fruit, etc etc These are things that wouldn't be in my cart if I didn't have teens. Clothing and accessories are another area, along with make-up, hair and skin products... I can see why stores are marketing to them. It's a smart move. I do believe though, if times were really tough in my household, I would just cut back even on the things they like, so I beleive the marketing firms are gearing up to hit households where the finances are still a little more fluid to keep them going through the tough times.
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4-19-2008 @ 10:06AM
diane said...
If anyone is surprised about Corporate businesses struggling, they have had their head buried in the sand! Corporate has put a superstore on just about every corner. There isn't a town or city in America that can support 24/7 support for these conglomerates. Oh...if you want to blame someone, start in Washington D. C. Ask your GREAT leader which end he is still wearing his head at.
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4-19-2008 @ 10:52AM
Bobby said...
Diane, you make me chuckle,,
You're entirely correct in saying corporate america has saturated us with goods & services of which we don't need 70% to truly survive but with that said, how is that a direct correlation to our "Great leader" in Washington DC?
I'm led to believe that too much enterprise is based on private business & growth models premised by decision making in private corporate board rooms across america.
Now if you can convince me GWB serves on all those boards & makes personal decisions to flood our capitol markets with unnecessary goods I'll go along with you. Other than that I actually think this has more to do with Wall street & stock holders expectations.
We've got real problems in this country, I'd love to see both sides working together to resolve issues than the endless banter of who's right or wrong. In a united country whether you like it or not we're all stuck with the same "Great leader"...
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4-19-2008 @ 11:06AM
Trisha said...
I live in LA, Calif.I raised my sone in the 80's to not care about brand names.He was well dressed and clean. I see too many parents wanting to give their children what they didn't have.....In this economy it is still happening..Prices on everything has gone up and pay checks are the same.They can try to target anyone they want, it only causes more agrevation in the home, with teens and parents argueing over what's more important food on the table and gas in the car to go to work, or a pair of brand name overpriced jean. Since Women do most of shopping in the home, they take the heat from teens.....Paychecks only go so far. If teens want something special, they should find a job and see want their parents are going through.
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4-19-2008 @ 11:34AM
JoJo said...
You're absolutely right on many counts. When I read that teens influence 90% of the purchases in the household, I couldn't believe it...made me wonder WHO is in charge of those families. I've always made purchases based on what the family likes, and whether or not it's something we need.
As for you saying "you can't get blood out of a turnip" (I'm from the northwest and I grew up hearing that too!) LOL...point is, I'm trying to figure out if mom and dad don't have the money for spending, where are the teenagers getting it? Robbing stores? Pitching fits until someone gives in and gives them the money?
I think that kids and teens need to learn when times are lean, you don't get whatever you want, whenever you want. If they want to babysit, work at McDonald's for the summer, or mow lawns to earn it, fine. But I think a couple of generations of kids just getting whatever they want has caused a lot of the financial problems in this country, like credit card debt and the housing crisis....like buying more house than you can afford.
Just my two cents
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4-19-2008 @ 11:41AM
Elle said...
We have had a couple of generations of kids whose parents have given them everything! I agree that has helped to lead this country into the problems we face today. Our economy is based on our spending like crazy and our government has sent all the good paying jobs overseas. People are taught to throw away everything if you don't like it (including people) and just get a new one. Spend, spend, spend! What ever happened to saving and reusing? Instead of throwing things out maybe we could find another use for them?
Who are these people who hand their kids $100 or a credit card and drop them off at the mall? My 13 year-old's friends look at her like she's a freak because she gets $5 a week and has to buy her own shampoo and makeup out of that. So she seldom has money to blow on Starbucks or other non-essentials when she goes to the mall with them. The other girls think it's "weird."
My son dated a girl for a while who lived in a half a million dollar house, her dad made over $100,000 a year and her mom worked and had more income. This girl thought they were just average people like everyone else. She has never understood going without or what it's like to wait for something because you have to save for it.
Our country is in trouble. A few years ago people who had been given everything their entire lives and who were not taught to look ahead signed their names to mortgages that in 3-5 years would almost double in payment size. I don't totally blame the bank for this. People should educate themselves and their kids. Now everyone wants to blame the bank. I believe everyone, the banks who are struggling because they made up those stupid loans and the people who were dumb enough to sign on them, are getting what they deserve for their actions.
This country is in trouble. Lots of people are becoming homeless, jobless and Detroit keeps making gigantic gas guzzling vehicles and wonders why they have to lay people off. Is anyone else here a little frightened?
4-19-2008 @ 11:35AM
Ginger Naylor said...
There is no way a teenager will not feel the effects of the recession. If mom and dad have to cut back, so do the kids. If mom has to go to work, then the kids will have chores to do or no allowance -- and many kids would rather go without the allowance thence no spending money. And for kids that DO do their chores and get spending money, where they spend it and how ALSO has to go through mom and dad --- which means they're going to want the most bang for their buck - and not some cheap made in China junk!
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4-19-2008 @ 11:36AM
"C" said...
This wont work...........I havent gone clothes shopping with my kids since they could both drive, nor do i want to!
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4-19-2008 @ 1:02PM
lloelius said...
In addition, a recent study has shown that, in responceto the recession, teens have become more thrifty in thier spending habits. I know that is true of me.
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4-19-2008 @ 1:03PM
Josh Smith said...
Yep. I saw that yesterday, you can find my take on it, http://www.walletpop.com/2008/04/19/teens-no-longer-recession-proof-consumers/
I wonder if the big retailers are hiring new consultants on Monday and scrapping layouts?
4-19-2008 @ 1:02PM
Bill (Virginia Beach, VA) said...
Who's DUMB idea is that? Teenagers spending money as "recession proof"? Where do the teenagers get money? UH..DUH, their parents! If the parent is laid off from work and budget is tight....NO SPENDING! Who's the MORON that did this survey anyway?
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4-19-2008 @ 1:06PM
BAMA said...
THAT'S IT! GO AFTER THE WEAK ONES!
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4-19-2008 @ 1:16PM
stephanie said...
Now maybe they should zoom in on the target and cater specifically to the 16-18 year olds with jobs and very little financial responsibility. They are MUCH more likely to "impulse shop" and buy stuff they like, even if they don't need it.
Just fyi - I'm not saying that all 16-18 year olds are irresponsible, I'm just saying teens like to spend money.
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4-19-2008 @ 1:20PM
mark said...
Im a teen and I know all the clothes i get are really expensive (BUCKLE, ABERCROMBE & FITCH, HOLLISTER.) and even the food we get is more expensive than other foods teens always want the best, and were not to worried about other things to not notice what our parents buy us.
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4-19-2008 @ 3:49PM
Marjorie said...
I have 3 daughters, 12 year old twins, and a 16 year old. They love clothes but it wasn't until my teenager started to use some of her own money to buy clothing that she realized maybe she doesn't need to go to Hollister. Now she likes Forever 21, Old Navy, which are more reasonably priced. We have the money to buy her clothes but we do so within reason. I had depression era parents and I grew up in a very different household. You just have to be a parent.
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4-19-2008 @ 9:02PM
Alicia said...
I'm seventeen and while I like to shop, I hardly think I influence my mom that much. We go shopping together all the time, but I know we're on a tight budget, so I look but almost never buy. Well, maybe in the grocery store, but both of us like to try new and sometimes strange foods, so most of the time, she'd buy the odd cheese without me along, anyway.
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