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Economy on the mend? Check your closet

Posted Apr 21 2009, 11:38 AM by Kim Peterson
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Does the economic recovery have any, ahem, legs? Perhaps jeans sales may hold the answer.

Sales of jeans rose 2.3% for the three months ending in February, MarketWatch reports, even as total apparel sales dropped 6.3%. And the brightest sales in the category belonged to premium jeans, which cost $100 or more. 

That's making some analysts feel more optimistic about the economy. Underwear, shoe and denim sales have been leading indicators in the past five recessions, MarketWatch reports, because they're often the first purchases made by people sprucing up their wardrobes.

"Denim is always at the forefront of a recovery period," one analyst told the site. "It eventually turns into growth after a recovery." 

The economic downturn has brought some jeans shoppers down to Earth. In the past, spending $300 on a pair of premium jeans was the norm. Now, experts say, that average price has dropped to around $125. Premium designers are responding by pushing out lower-priced jeans, and that in turn is cutting into brands like Levi Strauss.

The companies benefitting from the latest uptick in jeans sales, according to MarketWatch, include VF Corp. (VFC), Phillips-Van Heusen (PVH) and Polo Ralph Lauren (RL).

Image credit: Nes Jeans, public domain release

Related reading:

Trouble for Abercrombie & Fitch

The shrinking of American retail

JC Penney fights for survival

Retail sales jump won't last

 

Comments

 

Jeans as an indicator?  Hmmm...  I think the amount of trash is a direct correlation to the America's Consumer (Consumption) Economy.  In other words, measure the weight or number of trucks of trash that are dumped weekly, monthly, etc...  It might be a dirty job, but the data collected is probably priceless.

How can the purchase of buying jeans be linked to recovery when it's generally 20 and under buying these designer jeans with their parents money more often then not.

Jeans that are over 40-45 dollars a pair are a want not a need...denim isnt that expensive it's the brand name your kids are after.

If as a parent you give in to your kid to buy them a pair of 100 dollar plus jeans then I have no pity for you if your foreclosing on your home.

Use your head and realize that for that same 125 dollars your kids can have 4 pair of Levis or Wranglers or Lee jeans which wear and look the same!

It's foolish spending on over priced items like this that will drive mid to lower income families into trouble....same scenario with tennis shoes!

Hey, Kim:

Ever heard of trading down?  It happens in the apparel business, too.  Let me tell you something, right now I wouldn't pay more than $15 for a pair of Wrangler Jeans at Walmart.  Anything more is a waste of money.  If you're paying over $100 for a pair of jeans you've got s__t for brains!

What scares me most is that I see a lot of articles like this where the author includes absolutely no grasp on reality: aka why we're in a recession.

Jeans over $100, Leased BMWs, $800K McMansions....

Are we doomed to repeat this over and over b/c our culture is obsessed with empty symbols of 'status'?

This country is in a recession because people, and businesses, overextended themselves. "Stimulating" the economy will not work if people keep running out to buy $100 jeans on credit. We'll just go right back into this mess.

So go ahead - Flip That House, Dance Like a Star, and Become an Idol by being an "aspirational consumer". I'll continue to grow my savings and pay no interest on my purchases and be happy in the home I own...

"Informed shopper"

It isn't people under 20 buying the designer jeans..it's about 25-40...and in most cases the quality (particularly in womens) is MUCH higher and well worth the price.  I own them, I sell them, and I own stock in them.  Also..alot of the most popular designed labels are Made in the USA--and that's what people are paying for.

Informed shopper, I bought two pair of Wranglers at Academy Sports over the weekend and they were under $20/pair.

Jean Hall,

I don't see how the quality of Levi's, Wranglers, etc could be topped.  Both the material and workmanship hold up for hundreds & hundreds of washings!  If you want to spend five or 10 times as much and call it quality, go ahead.

Jean...well if these women have disposable income to blow on a pair of jeans at a 100+ price point then thank god I'm not married to one of them ;-) I would lose it if my wife went out and "wasted" that much on a pair of jeans when we have other mounting bills such as food, heat, electricity etc., etc.

Who in there right mind thinks that 100+ jeans are a need they are a want! I'll tell you who...the 45k a year millionaires who walk around with their 100 dollar jeans and think their crap doesnt stink!

And dont give me that quality line as I'm certain Levis wear just the same if not better then (insert brand name here) with a fancy label on them!

Those who have it flaunt it and those that dont live within their means (hopefully)!

Status and greed got us into this mess, why not let it lead the way out?

Informed Shopper, I see your point, but try and see ours- I do buy premium jeans, but I won't buy them at full price. I buy Lucky jeans specifically for three reasons;

They are made in America.

They wear like iron (just like Levi's or Lee).

Unlike Levi's or Lee, they don't give me a horrifying wedgie all day!

Unfortunately, some of us just don't fit some brands of jeans. I wish I did- I used to fit quite comfortably in Lee, but I'm older now, and that came with comfortable fit issues.

So I buy premium jeans, in the one brand that I have found that always fits, is comfortable, and lasts. But I also buy them on sale at TJ Maxx or Marshalls, or at a large sale in a department store. I won't pay a hundred dollars for a pair of jeans when I can get the same ones with a little more effort for 60-70% less.

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