Teen Retailers Continue to Struggle With Online Shopping
NEW YORK ( TheStreet) - Given the terrible earnings results this quarter by teen retailers including Abercrombie & Fitch
Retailers across the board blamed poor mall traffic and highly promotional environments from competitors for disappointing earnings during the second quarter. The teen retail sector particularly suffered during the quarter as their demographic shored up spending, mainly for things that weren't apparel.
Aeropostale, for one, plans to "accelerate" store closings to 30-40 this year. American Eagle and Abercrombie already warned that it expects third-quarter sales to fall and both declined to give guidance beyond the October-ending quarter.
However, of the three companies mentioned, all saw double-digit increases in sales from their direct-to-consumer businesses - essentially their e-commerce businesses, though it's still a small portion of total sales.
Also see: A Tale of Two Retailers
In today's digital and mobile landscape, there are definitely retail winners and losers, with many that are playing catch up. Coffee giant Starbucks
While it's true that teens have less money to spend these days, if retailers don't want to become dinosaurs, getting on the digital and mobile bandwagon should be priority.
A U.K. study following a group of 10- to 15-year-olds over a period of five years may have big implications for how big and small retailers, on both sides of the Atlantic, strategize the future business of shopping.
According to the results of the latest Amaze Generation report released on Friday, three quarters of the study group expressed a "clear preference" for shopping online vs. in stores, "offering a bleak vision of the future of the high street and very rational view towards store closures," as well as the very real threat of so-called showrooming, where consumers enter stores to view products in person, but ultimately make purchases online.
Commencing in 2011, the five-year research study looks at the impact of technology on the behavior and attitudes of consumers age 10 to 15. The latest report follows the third year of research by Amaze, a London-based marketing and consulting firm.
The report found that youngsters see more choice in the digital space as a large benefit to shopping online along with the experience being easier and more convenient. Study participants "also see the potential to sell online through sites like ' eBay