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NewsFriday, April 18, 2008 10:53 AM CDT
Teens turn to thrift as jobs vanish and prices rise
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NEW YORK -- The souring job market and rising costs of the usual teenage indulgences - a slice of pizza, a drive to the mall, the hottest new jeans - are causing teens to do something they rarely do: be thrifty.

It's a far cry from the freewheeling spending of recent years, when teens splurged on $100 Coach wristlet handbags, $60 Juicy Couture T-shirts and $80 skinny jeans from Abercrombie & Fitch.

Now jobs for teens are less plentiful, and parents who supply the allowances are feeling the economic pinch themselves.

The stalwart retailers of teen apparel, such as Abercrombie and American Eagle Outfitters Inc., are reporting sluggish sales, defying the myth that teen spending is recession-proof: It holds up longer, but can eventually fold.

It's even becoming cool to be frugal.

Last week, Ellegirl.com, the teen offshoot of Elle magazine, launched a new video fixture called Self-Made Girl, which shows teens how to make clothes and accessories. The first video offers tips on how to create a prom clutch.

"It's a little tacky in the economic unrest to tote a big logo bag," said Holly Siegel, the site's senior editor. She said it's no longer about teens "one-upping each other," but rather where they can get it cheap.

Victoria Bradley, a 16-year-old from Springfield, Mo., says the $80 she earns each month from baby-sitting is being eaten up by more expensive school lunches, late-night snacks with friends and stylish clothes.

Now, she says, she and her friends head for the thrift store or just browse at the mall.

"I used to be able to buy a T-shirt and jeans every couple of months," Victoria said, adding some of her friends are even "making their own clothes or altering their old ones to fit or look better."

Victoria's mother, Michelle Bradley, said she and her husband cut back spending on themselves last year, and early this year also started paring back "frivolous" buying for their three girls.

"We have made a conscious effort to not use credit cards," said Bradley, who stopped paying for Victoria's text messages last month. The top priority is school supplies and choir fees.

The job market for teens isn't what it used to be, either: Nathan Reeser, a Cincinnati 15-year-old, lost his job making pizza four months ago and has had to cut back on spending. He's shopping more at Target and less at Abercrombie & Fitch's Hollister stores.

"Now, I just get money from my parents, but they don't have as much because of taxes and everything else," he said.

Teen hiring has slumped by 5 percent since March 2007, with many mom-and-pop stores, which typically hire younger workers, laying off employees. Hiring in the overall job market fell by just 0.1 percent during the same period.

That's still not as bad as the 13 percent drop in teen hiring in the early 1990s. That means that if the larger job market mirrors the last teen hiring slump, "we're not out of the woods," said Michael P. Niemira, chief economist at the International Council of Shopping Centers.

Economists say this teen spending slump could be the worst in 17 years, when teen frugality led to the demise of once-hot Merry-Go-Round Enterprises Inc. and ushered in an era of flannel shirts and torn jeans.

Last month, teen retailers suffered an 8 percent drop in sales at established stores. The good news is that the under-20 crew is still spending on tech gadgets like iPods, cell phones and headsets, analysts say.

What makes this slump different, says Deloitte Research chief economist Carl Steidtmann, is the soaring cost of basics such food and gas, which have a direct impact on younger consumers.

Gas could reach $4 a gallon this summer, and prices for teen favorites like pizza and potato chips have all climbed, squeezing the amount of cash teens can spend elsewhere.

Sales at teen retailers open at least a year averaged a 0.5 percent decline last year, compared to a 3.3 percent increase in 2006 and a 12.1 percent gain in 2005, according to a UBS-International Council of Shopping Centers tally.

Retailers like American Eagle and Tween Brands Inc., which operates Limited Too, have cut their earnings outlooks amid deeper-than-expected sales declines. Abercrombie & Fitch reported a disappointing 10 percent sales drop in March, while Pacific Sunwear of California Inc. announced earlier this year it was shuttering its urban-inspired Demo stores.

Among the few bright spots is Aeropostale Inc., whose jeans are about 30 percent cheaper than Abercrombie & Fitch. Candace Corlett, principal at consulting firm WSL Strategic Retail, said low-price chains like H&M and Steve & Barry's should do well.

And Urban Outfitters Inc., which operates its namesake stores and the Anthropologie brand, has held up well. Trend experts believe that's because it has a thrift-store feel.

Secondhand clothing chains have seen business surge this year as teens and their parents buy popular brands like Gap, Banana Republic and Juicy Couture at a fraction of the regular price.

Kerstin Block, president and co-founder of Buffalo Exchange, a Tucson, Ariz.-based chain that sells second-hand clothing, said Gap jeans there run $9 to $20. A new pair runs $50 to $60. Block noted that buying second-hand is also appealing to a growing eco-friendly sentiment among teenagers.

"It is way cooler to get a super deal on that shirt rather than being able to spend the most money on something," said Anna D'Agrosa, director of Consumer Insights at The Zandl Group, a market research company focusing on teens. "Kids are becoming really aware of what is happening to their economy and to their families."

Take a look
Alyssa Kamatainen, who is moving back to her hometown Seattle, right, sells her shoes and shorts to store manager Monika DeClay at the buy counter at Buffalo Exchange in the Sherman Oaks section of Los Angeles, Wednesday April 16, 2008. Second-hand clothing chains like Buffalo Exchange have seen business surge this year as teens and their parents buy popular brands like Gap, Banana Republic and Juicy Couture at a fraction of the regular price. (AP Photo/Kevork Djansezian)
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Reader comments on this story - 15 total

Note: All views and opinions expressed in reader comments are solely those of the individual submitting the comment, and not those of the Pantagraph or its staff.

molon labe wrote on Apr 18, 2008 11:03 AM:

" ekim.
YES illegal aliens have taken these and other jobs.
Don’t try and include illegal aliens with legal immigrants.
It’s like comparing apples to oranges.
I have seen teens and others that wanted to work, but there has been an illegal alien adult that’s has the job.
And yes I did report them to ICE.
I see you failed to comment on the other points I made so I can only think you want to keep quiet about the invasion of the United States and other governments controlling our politicians.

"

ekim wrote on Apr 18, 2008 10:12 AM:

" NO teen jobs have not been taken by imigrants. The have been taken by people who are actually interested in working. I have seen a teen in years who had or wanted work. It shows in everything they don't do. The self entitlement is crazy. Absent parents don't help. "

molon labe wrote on Apr 18, 2008 9:26 AM:

" Not only rising prices are to blame but also the decrease in jobs teenagers used to hold.
Babysitting, fast food
And it’s not only that, but the jobs the illegal aliens take from factories and construction.
They don’t just pick produce
New York like Chicago is a sanctuary city for illegal aliens that take the jobs that were traditionally held by these young people.
The Mexican government has organized a march on May 1st here in the United States to try to bring pressure to bear on our government to give illegals amnesty so they can keep the jobs they have stolen from the legal Americans.
Doubters.
This year’s demonstrations will actually be organized by a new group that is sanctioned by the Mexican government.
Founded last year in Mexico City, the First Parliament of Mexican Migrant Leaders Living in the U.S.A. was formed to give illegal alien Mexicans a voice in America’s political system.
The body consists of 46 members representing 23 states.
Incredible as it may seem, a foreign government openly created a sort of congressional representative for the illegal population of the United States.
It isnt about race.



"

The Cat wrote on Apr 18, 2008 9:25 AM:

" As pointed out by willtwannabe illegals are part of the problem but so is the minimum wage increases that make it necessary for some small businesses to cut back on employees or go to illegals to cut costs. This is really an issue for food-based businesses that now have to pay more for foodstuffs as a result of ethanol mandates. There are real consequences to “progressive” feel good policies. "

Qwijibo.Qwijibo wrote on Apr 18, 2008 9:12 AM:

" When I glanced at the title of the article I thought it said, "Teens turn to theft.." I guess it would be a little more financially lucrative. "

Political Heretic wrote on Apr 18, 2008 8:46 AM:

" To alwayssomething. Finally, someone else who can see the forest for the trees! Gas prices, however, won't be the only reason the Second Great Depression will come soon. A middle class weakened by outsourcing while being heavily invested in a stock market dependent heavily on a financial services sector that has engaged in wildly irresponsible behavior, the subprime mortgage fiasco being only the first and most obvious example. An incredibly high national debt in conjunction with a tax-phobic voter base. A populous heavily in credit card debt with no savings, preferring to engage in gluttonous materialism instead. Add to this the fact that the Dow Jones has always been heavily correlated with the demographics of the 45-54 year old sect. Old enough to have money, but not old enough to be stashing away tons of money for retirement, this group spend the most on non-essential items than any other group, and their numbers are going to PLUMMET at the end of this decade. Together, these factors, along with others, will combine to decimate our economy. Think you lost money when the tech bubble burst? You ain’t seen nothing’ yet! "

Titan120 wrote on Apr 18, 2008 7:49 AM:

" It may be good for teens to be thrifty, but it would also be good for them to be able to have work experience before they have to enter the "real world." "

willytwannabe wrote on Apr 18, 2008 7:26 AM:

" The traditional teen jobs have been taken by illigal immigrants. just one more effect of our porous borders. Go to any burger joint and see. "

Meh wrote on Apr 17, 2008 10:58 PM:

" Ah, the good 'ol boomin' Bush economy. There's no crappy jobs for teenagers because adults need to work 3 of them to survive. Uniquely American! "

Pinko Commie wrote on Apr 17, 2008 10:50 PM:

" Teens are not thrifty because they want or need to. They do it because it's A) trendy and B) the only way to find oriignal clothing. "

alwayssomething wrote on Apr 17, 2008 8:31 PM:

" I said it before and will say it again...if government doesn't see the writing on the wall they are totally blind!!! All the signs are there.....if they don't do something about the gas prices we are going to be sliding into a depression. Ask around at some of the older generation who lived through the depression they'll tell you. They lived thru the depression...they can see it coming...it all boils down to the gas prices. It affects EVERYTHING!!!! "

protohooman wrote on Apr 17, 2008 7:59 PM:

" but of course it is simply not affecting us here in our "bubble". "

Political Heretic wrote on Apr 17, 2008 7:45 PM:

" This is good. Frugality was fact becoming a lost art in our culture with the greatest generation dying off and being replaced by self-indulgent and recklessly impulsive baby boomers and gen-Xers. This will prepare them for life in the falling empire that is America. "

cocoa wrote on Apr 17, 2008 7:27 PM:

" It's good to see teens being thrifty more. I'll be interested to hear how well the new Hollister and all the other teenybopper stores at Eastland do with the economy suffering like it is. "

Geez... wrote on Apr 17, 2008 7:08 PM:

" Time to grow up kids! After school you will have to put a roof over your head, fill the 'frig AND pay taxes,,,oh my! And, stuff is not getting any better. "

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