Despite concerns about the U.S. economy, teenagers continue to spend on brands like Nike and Lululemon.

• Teens are shifting their shopping habits while worrying about economic uncertainty, according to Piper Sandler's biannual "Taking Stock With Teens" survey.
• The Russian war in Ukraine is becoming a growing concern for them, while the Covid-19 pandemic is less of a priority.
• Teens often express uncertainty or disinterest in the concept of the metaverse.

According to a new survey, despite concerns about economic uncertainty, teens are increasing their spending and changing their shopping habits.

Teenagers are increasingly preferring athletic apparel brands that offer comfort and style over traditional clothing labels, according to Piper Sandler's latest "Taking Stock With Teens" report.

Teens are often uncertain or uninterested in the concept of the metaverse, which involves purchasing goods through a virtual reality experience. Several retailers, including Nike, PacSun, Forever 21, and others, have begun exploring this emerging technology.

While a small percentage of teenagers have purchased NFTs, a growing number of them are familiar with them.

The survey showed that while people are less preoccupied with the Covid-19 pandemic, they are increasingly concerned about the Russian war in Ukraine.

The biannual survey's results have significant implications for businesses competing for this generation's money, especially given the current uncertain economic climate.

Teens are estimated to spend approximately $66 billion on various items this year, including fast food, video games, handbags, and sneakers, according to Piper Sandler. This is an increase of 9% from the spring 2021 report and 4% from the fall survey. The highest reported annual spending by teens was $3,023 in the spring of 2006.

In a survey conducted by Piper Sandler from February 16th to March 22nd, 7,100 teens were surveyed. The average age of those surveyed was 16.2, and the average household income was $69,298. Thirty-nine percent of the teens surveyed were employed part-time, which is an increase from 38% last fall and 33% last spring.

Concerns about the economy on the rise

Despite a steady improvement in teen-spending levels since the fall of 2020, businesses remain uncertain about what may halt growth and whether consumers will reduce their spending.

The percentage of teens who believe the U.S. economy is getting worse has increased to 71%, from 56% in the fall and 46% in the spring, according to Piper Sandler.

The most significant political and social concerns for teens, according to their responses, were Russia's invasion of Ukraine (13%), the environment (11%), racial equality (10%), gas prices (10%), and inflation (4%).

Piper Sandler's survey found that the coronavirus dropped off the list of teens' top 10 concerns, after ranking fourth in both the fall and spring surveys.

The concern among Generation Z consumers for the environment presents an opportunity for rental platforms such as Airbnb and resale businesses like ThredUp.

Nike, Amazon keep top spots

Nike has maintained its position as the most popular clothing brand among teens for 11 consecutive years, while also increasing its lead as the preferred footwear brand among Gen Z consumers, according to a survey.

Despite being surpassed by Lululemon, H&M moved up one position to fourth place, while Adidas remained in fifth.

The survey released Wednesday found that athletic brands accounted for 44% of teens' favorite clothing labels, the highest percentage Piper Sandler has seen for the category. This aligns with a broader trend among consumers during the pandemic towards stretchy and loose-fitting clothing for home use. Despite heading back to schools and offices, many teens are still including athletic brands in their wardrobes.

Shein, a Chinese e-commerce fashion giant valued at approximately $100 billion, has dropped from sixth to seventh place among teens' favorite clothing retailers, but has improved from eighth place in the spring of 2021.

On average, females spend $51 more than males on shoes annually, despite continuing to outspend males on clothing, according to the Piper Sandler survey.

Despite a slight decline in its share of teen preference, Shein remained the second-favorite website for overall shopping, with a 53% share, up from 52% last fall. Nike, PacSun, Lululemon, and other retailers followed in that order.

The metaverse and platforms such as or Decentraland have seen a 26% ownership rate of virtual reality devices among teens, with only 5% using it daily. Forty-eight percent of teens are either unsure of or not interested in the metaverse.