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October 9, 2025
What Can Retailers Do To Bolster Teen Spend?
There’s a big of gloomy news on the horizon for retailers relying on teen consumers, according to Piper Sandler’s most recent “Taking Stock With Teens” survey, in partnership with DECA.
The headline: Teen spending, on a self-reported basis, fell 6% YoY to $2,213, with that figure being pegged as down 1% on average versus the past decade.
Anna Andreeva, managing director and senior research analyst at Piper Sandler, delivered the bad news before pivoting to explore the silver lining.
“On a positive note, looking at wallet share for the upper income teen, clothing grew 1% year-over-year driven by females, while footwear share held steady after a decline last spring,” Andreeva said.
Teens Show Preference for Established Brands With Cultural Cache
Other notable key findings include:
- Nike held the top spot in both the footwear and apparel categories in terms of brands, perhaps signaling that the company’s turnaround efforts could be showing signs of promise. Hollister and Brandy Melville took down the No. 2 and No. 3 positions in apparel, respectively.
- The core beauty wallet tumbled by 2% YoY, to $336. However, e.l.f. Beauty maintained its position as the top beauty brand for teens, and the percentage of teen girls who reported wearing makeup sometimes or daily improved by 1 percentage point, to 85%.
- Sephora retained its position as the top beauty shopping destination, while Ulta came in closely behind. Target held out at a distant third.
- Lay’s (PepsiCo) stuck it out as the top-rated snack, followed by Goldfish (Campbell’s) and Cheez-It (Kellanova). Dr. Pepper was ranked the No. 1 beverage brand (10%) with Coca-Cola (10%) and Gatorade (8%) following in its footsteps.
- Apple appears to have a near-lock on teen consumers, with 87% reporting having an iPhone. Nearly one-fifth (17%) indicated they expect to upgrade to an iPhone 17 this fall or winter.
- Facebook, and more broadly Meta, may have a demographic problem on its hands, although it has an insurance policy in Instagram. TikTok dominated the preferred social media platform category (46%), followed by Instagram (31%) and Snapchat (14%).
On the celebrity front, Adam Sandler was cited as the top personality, followed by LeBron James and Drake — and in terms of influencers, it’s perhaps no surprise that MrBeast topped the charts, with LeBron James and Alex Earle next on the podium.
The survey has been conducted since 2001, this time involving nearly 11,000 teen survey respondents with an average household income of just under $70,000.
Discussion Questions
How can retailers incite teens to spend, despite a seeming reluctance for this cohort to do so? What, in your opinion, are the factors behind slowing spend?
Is the fall in teen spend a direct result of a weaker economy, or are other factors more — or equally — in play?
How important is social media visibility for retailers looking to make in-roads with tomorrow’s men and women? Is Facebook in potential trouble?
Poll
Loading …BrainTrust
Mohamed Amer, PhD
CEO & Strategic Board Advisor, Strategy Doctor
Lisa Goller
B2B Content Strategist
Scott Benedict
Founder & CEO, Benedict Enterprises LLC
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From an individual brand/retailer point of view, the answer is somewhat obvious: by focusing on their needs. The execution, however, is more complex. It requires understanding teens in terms of what they want, how they shop, and how they form connections with brands. There are two key differences from previous generations. First, teens rely heavily on social channels for product discovery and place more trust in respected influencers than in random celebrities. Second, they want to be co-creators – to feel part of a brand or its community – and this sense of participation is a powerful driver of loyalty.
And I am skeptical that per capita teen spending has actually dropped over the past decade, especially with inflation. All of our figures show it has risen. I suspect the problem is in self-reporting. This is never a great way of measuring spend, especially when not triangulated against other sources.
Well it’s not quite that bad, but I’m not sure “incite” is the right word choice here. And in the case of some of the categories listed – snacks – maybe the world would be better off if teens don’t spend as much…even if the individual companies aren’t.
Having gotten the scold in me out of the way I’ll answer the question: if we assume teen spending is by definition (largely) discretionary, could this be a warning of a bumpy ride ahead? Could be.
Perhaps we need a riot to persuade teens to spend more!
If Keynes could advocate digging holes and filling them up, why not breaking windows and fixing them ? (A Great Replacement Theory we can all get behind! 🙂
To reignite spending among teens, retailers need to meet this generation where they are—digitally, socially, and emotionally. Today’s teens value authenticity, community, and participation over traditional advertising. Brands that invite them into the creative process through co-created content, limited-edition drops, and influencer-driven storytelling will earn both attention and loyalty. Retailers can no longer rely on “cool factor” alone; they have to embed themselves into the cultural fabric of platforms like TikTok and Instagram, where brand discovery and peer validation happen in real time.
The slowdown in teen spending isn’t just about the economy. Inflation and cautious family budgets play a role, but deeper behavioral shifts are at work. Teens are prioritizing experiences, digital content, and resale shopping over traditional retail consumption. They’re more selective, seeking brands that align with their values and personal identity rather than just status or style.
Social media visibility is absolutely essential for retailers hoping to connect with tomorrow’s consumers. But that doesn’t mean all platforms carry equal weight—Facebook’s relevance among teens continues to decline as attention moves toward more immersive and creative ecosystems. For brands targeting the next generation, visibility must translate into engagement, authenticity, and community—not just presence.
Re: “Teens are prioritizing experiences, digital content, resale shopping”
I think rising costs will knock down some “experiences”… or lower a few notches in grandeur. (The high flying events meant for boasting about on IG & TT)
Digital, when it reaches 18 hrs/day… might give way to fatigue.
Resale… to be at scale… needs the current top retailers to veer into resale as part of their profit structure.
Resale, when self-reported, makes me skeptical…fast turn/cheaper fashion has been an overriding mentality.
Teens= a time for figuring themselves out as people. But a 24/7 spin cycle of fads/cores does not give individuals time to reflect.
The word “authenticity” may be used less in the coming years. Specificity is needed. A difference when speaking about product quality… or human nature.
Authentic can be very bad, as well as good. Can human nature still be counted on as having integrity? eg some would say the USA government is very authentic (true to self) as they published their intent for 2025.
If dupes (vs saving up for the real thing) keep thriving, that also questions authentic desire for authenticity.
Factors behind teens’ slowing spend include stiff competition for jobs, prioritizing essentials over impulse buys, increased saving, and a fondness for thrift and experiences.
As teens smash marketing paradigms, savvy retailers and brands listen and learn from them, including their social media and gaming habits, and the influencers they trust.
Lisa, interesting observation. My four grandchildren all have a “fondness for thrift and experiences (16 y.o. to 21 y.o.)”
My Gen Zs seek experiences (basketball tickets, local arts & Christmas events) and visit thrift stores for Halloween costume inspiration. The number of gifts under our Christmas tree keeps declining as they shift from products to services.
This will be longer because it touches on a fundamental aspect of our values. Teenage brains are still developing the ability to control impulses, plan ahead, and make sound decisions well into their mid-20s. Social media has weaponized this vulnerability.
Yes, retailers have business obligations to shareholders, but not at the expense of ethical obligations when marketing to kids whose brains are still developing. The real question should be: “How do we serve Gen Z’s real needs without exploiting them or making their mental health crisis worse?”
Maybe teens are spending less not because of marketing failures, but because they’re demonstrating wisdom: 1) they’re more financially anxious after watching economic instability firsthand, 2) they’re exhausted by the constant pressure to buy things for social validation, 3) they’re more aware of sustainability and overconsumption, and 4) they’re questioning whether brands actually deliver on their identity promises.
If retailers genuinely want to build relationships with Gen Z, here’s what actually helps: partner with schools on money management education. Choose authenticity over influencer theater. Be transparent about priorities like sustainability. Take mental health seriously: if your marketing relies on FOMO, body image insecurity, or status anxiety, you’re part of the problem.
Not every spending decline deserves a turnaround strategy. The brands that will earn Gen Z loyalty long-term are those willing to invest in their development rather than exploit their vulnerabilities. Building trust means helping teens develop healthy relationships with money and shopping—not surveilling 11,000 of them to figure out how to separate them from their money.
Can I give you more than an arrow up?
A generational game changer: partner with schools on money management education