Piper Jaffray’s survey of spending trends among 9,500 American teens shows that spending is down, casualwear is up, and European luxury brands account for 30% of mindshare among preferred handbag brands.

The investment banking firm's 38th semi-annual Taking Stock With Teens survey questioned teens (with an average age of 15.8 years) across 42 states. According to the firm, so-called Generation Z contributes approximately $830 billion to US retail sales annually, making it an influential consumer group where wallet size and allocation provide a proxy for category interest.

Results showed that overall teen self-reported spending decreased by 4% year on year and 10% sequentially to $2,400; this is the lowest level since Autumn 2011. The number of teens who believe the economy is getting worse rose from 25% in Autumn 2018 to 33% now. 

“We saw the lowest teen spending levels in eight years,” said Erinn Murphy, Piper Jaffray senior research analyst. “The two most challenged categories were handbags and cosmetics as females reprioritise their spending with eating out and footwear/apparel.”

Female teens indicated they spend an average of $90/year on handbags, which is a new survey low. In spring 2006, spending on handbags peaked at an average of $197/year. According to the survey, European luxury brands, including Louis Vuitton, Gucci and Chanel, account for 30% of mindshare among preferred handbag brands.

“Broadly, the casualization of fashion continues,” Ms Murphy added, pointing out that Nike gained share within its first place rank, lululemon hit a new survey high as the seventh most preferred apparel brand, and Crocs rose to the 7th most preferred footwear brand. 

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