According to a recent article by Glossy, teen-centric mall brands like PacSun, Abercrombie, and American Eagle have lost almost all traction with their key demo (i.e. the teens don’t fucks with ’em anymore).
As the article explains, “[a] more affordable price point has made brands like Forever 21, Asos and others in the fast-fashion space the preferred brands of teens today,” while labels like Nike, Adidas, and Supreme have become the go-tos for teens looking to spend a little extra.
Consequently, and not surprisingly, “the rapid move away from shopping malls to Instagram for inspiration and online-only brands for shopping” has been “devastating” for the brands that “invested so much in brick-and-mortar stores.”
How devastating, you ask? “Ninety-three percent of products at Aeropostale are discounted, many of them by up to 94 percent.” And, “more than half of American Eagle’s inventory is discounted.”
And until the old guard figures out how to make themselves relevant to the Instagram generation, it’s only going to get worse. “Ultimately many of these brands lack the online capabilities and Instagram presence that high school consumers desire, leaving them vulnerable in comparison to brands that are much more social media-savvy.”
You can read more about it at Glossy.