Shop Talk

Check out how teen retailers have miscalculated demand this holiday season and are resorting to steep discounts to get savvy young shoppers into their stores.

A visit this week to a Bay Area mall by Reuters reporter Alexandria Sage found that teen retailers such as American Eagle as well as Abercrombie & Fitch and its Hollister chain, have been reduced to slashing prices and offering “buy one, get one for half off” promos to salvage a holiday season that was supposed to be merrier than last year.

Like other retailers, the teen stores reined in inventory in the hopes of avoiding the deep discounts they’ve ended up have to offer anyway.

Their biggest goof? Bland, homogenous items, leaving pricing as the only differentiator. 

Many teen retailers’ stocks have tumbled since 2009 highs reached just two months ago, and at the rate they’re going, investors may just leave them lumps of coal in their stockings next week.

Also in the basket:
- Rite Aid narrows loss despite sales drop, shares up
- Pier 1 surprises with profit, sees better margins
- National Beef pulls IPO

(PHOTO: Reuters)