Declining mall traffic has eaten away at the teen retail sector, contributing to the recent bankruptcy filings of once-iconic 90s brands such as dELiA*s, Wet Seal and Deb Shops, Forbes.com reported yesterday. Now, industry analysts have turned their gaze to Aeropostale, as the ailing retailer has experienced eight consecutive quarters of losses and burned through $84 million in cash in the last year. Though it has some runway due to a rescue loan provided by private-equity firm Sycamore Partners last March, it may have to raise additional financing if it continues to sustain losses. U.S. tweens and teens account for approximately $208.7 billion in spending dollars per year, according to data from the 2010 U.S. Census. But a spring 2014 Piper Jaffray survey tracking teen spending patterns observes that food and electronics continue to divert teen dollars away from fashion, with food taking a greater percentage of the teenage wallet than fashion for the first time in the survey’s history.
