But as the economy improved, teens went back to some of their favorite brands, though they still wanted fat discounts. Both American Eagle and Abercrombie have seen their sales improve recently as they have worked hard to reinvent their businesses. American Eagle, for example, has been able to scale back its discounting as it overhauled its fashions, including adding more stretch to its jeans. But Aeropostale has been slow to adapt to these changing times.
Not anymore. Teens, inspired by Instagram and the like, are looking to personalize their looks, and prefer to grab items from different stores. That has been a big problem for Aeropostale, whose sales had been driven by logoed merchandise.
Aeropostale started to shed its logoed clothing and began focusing on trendy items about three years ago. It teamed up with names like stylish American video blogger Bethany Mota. But its efforts were too little, too late. The new looks never failed to gain traction with shoppers.
But they're also willing to pay full-price for something they covet. However, Aeropostale was forced to constantly discount the entire store by as much as 70 percent off because they couldn't get shoppers to buy the clothes. But increasingly, kids are shopping on their smartphones and going to the mall for specific items, not just to roam around. And a rash of bankruptcies of mall-based retailers have left some holes and hurt traffic at the shopping centers, says David Tawil at Maglan Capital, a hedge fund that focuses on distressed securities.
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