Staying Alive in a Dead Holiday Season
For many retailers, fiscal success boils down to one and only one period of the year—the Christmas selling season. And for the overwhelming majority of U.S. retailers, 2008 was a terrible year. Sure, some retailers did okay, but these few companies tended to be discounters and membership stores, such as Wal-Mart and BJ's
The only other exception appears to be retailers who cater to the teen and young adult markets. For example, while November 2008 sales (compared to November 2007 sales) were down 5 percent at Aeropostale, down 10 percent at the GAP, and down 17.5 percent at Kohl's, sales at the teenage retailer Hot Topic were up 6.5 percent, up 6 percent at American Apparel, and up 15 percent at Buckle. American Apparel, for example, targets "young, single, urban creative-types accustomed to living on a shoestring." Hot Topic's November success is due in part to the "brisk sales of gear inspired by 'Twilight,' the teenage vampire movie."
Based on what you read about age subcultures in Chapter 12, explain why stores catering to teens and young adults did well during the 2008 holiday selling season?
The stores catering to teens and young adults in 2008 did well during the holiday season because this market segment influences what their parents purchase. They know many brands very well, are into wearing the now clothes, and purchasing the now products. This market segment is knowledgeable on many different types of products and brands that are important to their image. These individuals seek out ...
The solution discusses how retailers stay alive in a dead holiday season.