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Kirsten Acuna/Business InsiderWet Seal filed for bankruptcy last year. Pacific Sunwear’s downfall proves how important the price tag has become. Pushing a ubiquitous look that teens could buy anywhere, the company needed something to draw in customers and it couldn’t find that. “That’s where you compete on price and … They just couldn’t compete on price,” Gabriella Santaniello, founder of A Line Partners, a retail-consulting firm, told Business Insider last month. To make matter worse, teens have so many alternative options. “There’s just a lot of options out there, and there’s a lot of cheap options,” she said in a recent interview, while pointing out teens’ ambivalence toward logos “levels the playing field, and it’s all about pricing and what sort of value you’re going to give to the consumer.” Further, a name brand plastered on somebody’s shirt doesn’t carry the same weight as it did for teens a decade ago. High-school girls don’t need Abercrombie & Fitch plastered across their shirts anymore to sit at the cool lunch table; a graphic Forever 21 (or a plain Brandy Melville tee) will suffice.
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