Thursday, July 19, 2007
Mall Curfews to Affect Teen Spending?
byAs summer temperatures continue to sizzle across the country, youngsters everywhere are looking for a cool escape from the heat. Pools and sprinklers are a kiddie favorite, but more mature teenagers looking to spend dough earned from summer jobs might rather hit up a cool, air conditioned shopping mall. They better get their shopping done early though, because they’ll have to be out before curfew. Mall curfew, that is. 
According to this article from Time magazine, shopping centers across the country are enforcing curfews that require shoppers to be over 18 after a certain time of day. Minnesota’s own Mall of America started this trend over a decade ago, and today 46 of the 1,200 malls in the U.S. have similar policies.
The reason for the so-called curfews? Unruly teen behavior. According to mall officials, rambunctious teens scare away older customers and family shoppers, cause safety concerns, and could hurt revenue. Instead of dealing with their rowdy behavior, managers are simply choosing to ban the under-18 set from hanging out at the mall in the evenings without a chaperone.
Is this a good idea? That depends. According to the Time article, some stores in Flint, Michigan’s Genesee Valley Center have reported sales growth in the double digits since a 5 p.m. curfew was implemented in early June. A USA Today story noted several other malls that improved safety and halted misconduct by implementing curfews. On the other hand, a curfew that isolates the 26.5 million teenagers in the U.S. might not be wise, considering that the market for teen products in 2006 was worth $189.7 billion.
Last month, MarketingVox.com cited a survey from Packaged Facts that proved just how much power teen spenders have. For instance, the aggregate teen income is expected to rise 14.4% over five years, from $79.9 billion annually in 2006 to $91.1 billion by 2011. Even more staggering is the size of the market for products bought by and for teens by 2011—$208.7 billion. To put this in perspective, Portugal’s GDP in 2005 was $194.9 billion. Wow.
Shopping malls around the country therefore face a tricky problem. While officials should take the necessary steps in providing a safe and peaceful shopping experience, they risk losing big revenues by turning away teens who will be the big spenders of tomorrow.
