Piper Sandler’s 42nd Semi-Annual Generation Z Survey finds mid-single growth year-over-year in apparel and footwear spend, led by females.  In the active lifestyle space, Nike remains the leading apparel brand for teens while Lululemon gained 200 basis points year over year; Nike is the No. 1 footwear brand—up 500 basis points year over year.

Piper Sandler’s 42nd semi-annual Taking Stock With Teens survey, conducted in partnership with DECA, highlights the discretionary spending trends and brand preferences from 10,000 teens across 44 U.S. states with an average age of 15.8 years.

This year’s Fall 2021 was conducted from August 17 to September 16; 96 percent of teens have returned to school in either a hybrid format or in person this Fall while 4 percent remained fully virtual. Piper Sandler said it received the highest amount of responses from the South at 47 percent of the mix and 10 percent of the responses from the Northeast—similar to Spring 2021 and Fall 2020 surveys.

“Our Fall survey showed an acceleration in overall teen spending, up 6 percent year-over-year. Of note, clothing took the highest priority within the teen wallet share since Fall 2014 at 22 percent, unseating “Food”. We saw a disproportionate gain in spending from upper-income females—with total fashion spending up 14 percent year over year. Within apparel, athletic is still the dominant trend with Nike and Lululemon taking new highs. Within footwear, while Nike reigns supreme, Converse and Crocs gained share whereas Vans slipped. Michael Kors took back its No. 1 ranking as a preferred handbag brand. Simultaneously, we are seeing a silhouette change with looser fitting denim, high-waisted mom jeans. We believe apparel replenishment will continue into 2022 as the consumer continues to replenish.

“GenZ is a conscious generation and teens this Fall survey cite the Environment as their top social issue. Second-hand is now second nature to teens and 62 percent of teens have sold second-hand and 51 percent have purchased second-hand.

“With 91 percent of teens coming back to school in-person, we are not surprised to see time allocation in mall-based specialty pick up. Still, teens are staying connected—estimating they spend 4 hours a day on social media. Snapchat & TikTok are the top-two social media platforms. While Amazon remains the No. 1 website—it did see mindshare slip year-over-year as female-centric websites like SHEIN are on the rise,” said Erinn Murphy, Piper Sandler senior research analyst.

Fall 2021 Key Findings

  • +MSD growth year over year in apparel & footwear spend (led by females); female spending on accessories +10 percent year over year
  • Clothing (22 percent of wallet share) is the No. 1 priority for the first time since Fall 2014—surpassing Food at No. 2 (21 percent share)
  • Areas of slight wallet share contraction year over year included: Video Games, Movies & Personal Care
  • Spending within beauty is evolving, with sequential build for haircare (+8 percent) and fragrance (+14 percent) while skin and cosmetics lag
  • Teens allocate 8 percent of their shopping time to secondhand; 51 percent of teens have purchased & 62 percent have sold secondhand
  • Chick-Fil-A is No. 1 restaurant for all teens; Starbucks remained No. 2 (+100 basis points of share year over year); Chipotle No. 3 (5 percent share)
  • 14 percent of teens consume plant-based meat with Impossible Foods as No. 1 (40 percent share) & Beyond Meat No. 2 (31 percent)
  • Video games are 8 percent of teen wallet share vs. 10 percent LY; 52 percent expect to purchase a NextGen console
  • Teens spend 32 percent of their daily video consumption on Netflix followed by YouTube (30 percent); Hulu & Other streaming gain
  • Cash is (still) king for teens as top payment method followed by Apple Pay
  • PYPL’s Venmo again ranked #1 with teens for payment apps, and its “Pay in 4” is teens’ top buy now pay later offering
  • 9 percent of teens claim to have traded cryptocurrency; 78 percent of these teens are male
  • 52 percent of teens cite Amazon as their No. 1 favorite e-com site (down 200 basis points year over year); SHEIN took No. 2 spot (9 percent share; +400 basis points year over year)
  • Crocs, PacSun, Hey Dude, Zara, SHEIN, Gymshark are all fashion brands gaining share, Under Armour & Vans had mixed results
  • Ulta gained 400 basis points share year over year as No. 1 beauty destination with 46 percent share; Sephora No. 2 at 21 percent share
  • Handbag spending improved to $96—up 10 percent year over year and up 3 percent sequentially, Michael Kors back in No. 1 spot
  • 87 percent of teens own an iPhone and 88 percent expect an iPhone to be their next phone; Apple is No. 1 watch brand for first time
  • Snapchat is the favorite social media platform (35 percent share) followed by TikTok (30 percent) & Instagram (22 percent, -300 basis points year over year)
  • Significant movement in top social & political issues led by Environment, Racial Equality & Afghanistan
  • Teens’ favorite celebrity is Adam Sandler and favorite influencer is Emma Chamberlain (unseating David Dobrik)