Dive Brief:
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Teen-clothing retailer Aeropostale will cut some 100 corporate jobs and close 125 of its 150 P.S. stores, which are mall stores that sell apparel for younger kids, the company said Wednesday.
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The retailer is suffering from five straight quarters of losses, is bleeding cash, and is under pressure from some investors to sell the company. In fact, the retailer named two independent board members Tuesday under pressure from activist investor Engaged Capital LLC.
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Like many in the teen-clothing market, Aeropostale is struggling with changes in buying patterns from teenagers and their parents.
Dive Insight:
Aeropostale is hardly alone. Major changes in teen shopping behavior are forcing many retailers to take a close look at their operations and product lines. Teens and their parents are getting pickier about what they buy, when they buy at all. The volatility in this area will likely continue until things shake out — either the economy improves, shoppers change their behavior, retailers figure out what it is teens (and their parents) want, or, most likely, some combination of these three.