These days it is more than just the economy that has been worsening. There has been a decrease as well in consumers purchasing brand name retail goods.
It may well be that consumers can no longer afford to maintain their shopping habits. The halls of a high end store that was successful during strong financial times may be vacant as shoppers flee to stores that offer more for their money.
The “brand name” stores have witnessed a steady decline in their sales while some stores with lower prices have seen increases.
According to retailsails.com, in August 2009, Nordstrom saw a 7.6 percent decline in their sales relative to the sales posted for last year during the same time period. High end teenage retailer, Abercrombie and Fitch saw a 29 percent drop in sales and Neimen Marcus watched their sales decline 16.6 percent for the same month.
It is stores with a less recognized brand name or stores that are considered discount retailers that have seen the biggest increases. They offer relatively low prices for good quality, fashionable clothing.
According to Gap Inc.’s website, gapinc.com, Gap reported a 6 percent drop in sales for October while their less expensive, more family oriented sister brand, Old Navy, reported a 14 percent increase.
Similarly, Aeropostale reported a 9 percent increase in sales for August 2009, according to retailsales.com and Kohl’s saw their sales increase, although only slightly, by 0.2 percent.
Students are more likely now to make purchases from these brands because of their low prices.
“Last year, I spent over $200 on a winter coat from Victoria’s Secret but this year I’m going somewhere like Old Navy where I can get one for less than $100,” said Alyssa Vallie. “I’m beginning to see my winter jacket as an investment and my money is valuable.”
Students are not just buying from less expensive stores but there are finding substitute brands as well. These brands offer the same type of product but lack the expensive brand name to match.
So instead of spending over $200 on a North Face jacket, students will opt for a Columbia outerwear fleece for only $90 or instead of spending $275 on 7 for All Mankind jeans, students will purchase denim from Gap for $70.
“This is the first year I bought Minnetonka boots instead of Ugg boots,” said Vallie. “They are the same style and kind of shoe with the fur on the inside but I just didn’t feel like spending all my money on Uggs.”
It is not just clothing that students are cutting back on. It is other luxuries such as eating out, trips to New York City, or spring break that are no longer within the realm of financial possibility.
Yet, while students continue to closely monitor their expenses, there are still some sacrifices they are not willing to make, no matter what the financial burden may be.
“Even though I have very little money to spend on fun things, I’ll never give up buying magazines,” said Alyssa Longobucco. “I buy so many a month, it’s kind of ridiculous.
Other students choose to keep up with modern technology and will spare no mercy at purchasing expensive items if it means they can have the latest cell phone, gaming system, or laptop.
No matter what students choose to spend money on, they will be able to justify their shopper’s guilt in some way.
“[Magazines] is what I want to do as a career,” said Longobucco. “So I can justify it as future career research.”
Students will choose to buy the pictured Minnetonka boots which are similar to the more expensive Uggs.
