Teen Retail Store Experiences Gains
Written by Ken Gaebler
Hot Topic sees more young consumers spend money.
While many stores have recently reported sales drops, the goth-inspired, alternative small chain Hot Topic has continued to experience an increase in profits, according to Reuters.
Except for the month of April 2009, the stores have reported profit gains starting in October 2008 after a five-month drought.
This is good news for small businesses that may be worried about lower profits or have had to adjust their income expectations.
Hot Topic has only 681 stores nationwide and it began carrying merchandise linked to the popular teen movie and book set, Twilight, which could be the reason for its increase in sales, the news provider reports.
However, the NPD Group's analyst, Marshal Cohen, told the wire service that Hot Topic should not expect consistent high sales due to its clientele, which could provide a useful tip for small businesses who hope to cater to teenagers.
Cohen explained to Reuters that teens are "the most fickle consumer - they can love you today and forget about you tomorrow."
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