Teen Fashion Spending Declines 24 Percent According to the 14th Biannual Piper Jaffray 'Taking Stock With Teens' National Study
October 10 2007 - 11:02AM
PR Newswire (US)
MINNEAPOLIS, Oct. 10 /PRNewswire-FirstCall/ -- Piper Jaffray &
Co. recently announced the results of its 14th biannual proprietary
research survey, "Taking Stock With Teens," a national study on
teen spending habits and retail brand perceptions. After conducting
mall research field trips in 10 cities across the United States and
surveying approximately 980 students, the Piper Jaffray retail
research team published key findings for teens' purchasing
behaviors and preferences in the categories of fashion, apparel
brands and retailers, beauty and personal care, home furnishings,
video games, digital entertainment and restaurants. Piper Jaffray
also partnered with the national DECA organization for the sixth
time resulting in 3,000 additional completed online surveys.
Overall, the results of the survey show that total fashion spending
declined 24 percent from the spring 2007 survey due to a gradual
maturing of the fashion cycle. Total spending declines were most
pronounced for young women where spending was down 18 percent
versus a decline of 9 percent for young men. The survey also found
that teens continue to spend a significant amount of money in the
fashion category. "The fashion category still represents 42 percent
of the total teen budget for the fall 2007 season despite
moderation in spending habits," said Jeff Klinefelter, senior
retail research analyst at Piper Jaffray. "However, we found that
spending expectations remain largely unchanged, as nearly 50
percent of the students plan to spend the same amount of money on
apparel this season. We believe the discrepancy between budget
dollars and expectations may be due to a decline in contributions
from parents." Other key findings from the survey include the
following: -- Teens were surveyed on their favorite places to shop
and their spending habits. Hollister took the lead for the sixth
consecutive time, followed by West Coast Brands, American Eagle,
Abercrombie & Fitch and Forever 21. Aeropostale moved into the
top ten retail brands for the first time, due to strong support
from young women. -- Overall spending in the beauty category is
down for teens and up for their parents; however, both demographic
groups are trending toward shopping at discount stores versus
traditional department stores. Students were also asked to rank
their favorite home furnishing retailer or cataloger in the survey.
Privately-held, Swedish-based IKEA was again the top choice,
followed by Pottery Barn/PB Teen. -- Eighty-three percent of teens
indicated they own at least one video game console and 51 percent
own at least two video game consoles. Sixty-two percent of teens
plan to own a next generation video game system, which shows an
increase of eight percentage points from the spring 2007 survey.
Additionally, "pre-owned" or used video games represent 41 percent
of video game purchases, which is consistent with spring 2007. --
When asked about buying habits of MP3 players and online music, 82
percent of the students who own an MP3 player indicated that they
also own some form of an iPod, which is up from 79 percent in fall
2006. Purchasing online music is becoming more mainstream as 64
percent of the students surveyed indicated they download music
illegally, compared to 72 percent at this time last year. iTunes
continues to dominate market share at 79 percent. In addition,
after only three months of availability, 3 percent of the students
own an Apple iPhone, and 9 percent expect to buy an iPhone in the
next six months. -- Students completed survey questions on
restaurants and spending on food this fall for the second time.
Starbucks continued to be the clear brand leader across the board
in both the school and online survey. Chipotle and McDonald's came
in second and third in the school survey, while Olive Garden and
Applebee's were second and third in the online survey. In total,
approximately 44 percent of the students surveyed believe they have
spent more money this year at restaurants than last year. Parents
were also surveyed on their apparel spending in a separate study.
The survey results indicated that spending on apparel for their
teens is down 33 percent from the spring survey and down 19 percent
on a year-over-year basis. Parent spending on themselves is also
down 23 percent from spring 2007 and down 26 percent when compared
to last year. These results suggest that the average consumer is
tightening the reins on spending. About Piper Jaffray Piper Jaffray
Companies is a leading, international middle-market investment bank
and institutional securities firm, serving the needs of
middle-market corporations, private equity groups, public entities,
nonprofit clients and institutional investors. Founded in 1895,
Piper Jaffray provides a comprehensive set of products and
services, including equity and debt capital markets products;
public finance services; mergers and acquisitions advisory
services; high-yield and structured products; institutional equity
and fixed-income sales and trading; and equity and high-yield
research. With headquarters in Minneapolis, Piper Jaffray has 25
offices across the United States and international locations in
London, Hong Kong, Shanghai and Beijing. Piper Jaffray & Co. is
the firm's principal operating subsidiary. (NYSE:PJC)
(http://www.piperjaffray.com/) Since 1895. Member SIPC and NYSE.
(C) 2007 Piper Jaffray & Co., 800 Nicollet Mall, Suite 800,
Minneapolis, Minnesota 55402-7020 DATASOURCE: Piper Jaffray &
Co. CONTACT: Rob Litt of Piper Jaffray & Co., +1-612-303-8266
Web site: http://www.piperjaffray.com/
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