Why does hot topic sell

The retailer expects to have between 12 to 15 percent of its nearly stores in the new format by the end of the year. That's good news given that Hot Topic Charts has suffered three years of declining sales at its stores open at least a year - a key measure of retail performance known as same-store sales. But that wasn't always the story. However, Hot Topic's problem was that while it offered shoppers a very unique concept when it was first launched, over time its merchandise was too narrowly focused on a niche market of fickle teens.

As the winds of fashion changed bringing back colorful and preppy clothing, sales of Hot Topic's Goth and alternative music-inspired clothing took a hit. McGinty said Hot Topic's core 12 to 22 year old customer hasn't changed "But I believe their preference in alternative wear has changed. The punk kid is no longer just punk. He is influenced by everything that's alternative," he said. Then they source individual items on a timely basis instead of trying to match a top with a bottom with a necklace," McGinty added.

Although the company doesn't break out same-store sales for its second concept - Torrid - McGinty said those stores were generally doing better. The company operates more than Torrid shops that sell larger-sized trendy clothing and accessories. Among its biggest fans is Jordin Sparks, the latest "American Idol" winner. The company also maintains a reliable channel of online sales through its website, which launched in Read more: We shopped for groceries at Costco and Trader Joe's and easily saw which store is better for the average shopper.

The store started out of a garage in Southern California in and mostly sold accessories and items adorned with skulls and spikes. Today, Hot Topic is more than a haven for punks, goths, and rockers — it's a fandom geek's heaven and likely the only place you can pick up a Harry Potter backpack and a clown-themed piece of lingerie all in one stop.

We visited a Hot Topic to see what the chain was doing right and saw how its ability to conform to changing fads is driving its success. Source: IMDB. Luckily, Hot Topic has managed to adapt. For you. World globe An icon of the world globe, indicating different international options. Get the Insider App. Click here to learn more. A leading-edge research firm focused on digital transformation.

Good Subscriber Account active since Shortcuts. Account icon An icon in the shape of a person's head and shoulders. It often indicates a user profile. Log out. US Markets Loading H M S In the news. Shoshy Ciment. Hot Topic is expanding despite tough conditions in retail and in malls. With over stores across the US and Canada, the chain sells merchandise based on whatever trend is sweeping the nation, from punk music to Harry Potter.

We stopped by a location in Queens, New York and saw why the atypical store has a brilliant strategy for surviving amid declining mall traffic. Visit Business Insider's homepage for more stories. One look inside let us know we that we were not stepping into your average mall store.

There were some racks with clothes at the entrance to the store that were on sale. We thought this was a great move to entice passersby to step inside for a look. The inside of the store kind of had a thrift-store feeling to it, as the walls and shelves were completely lined with merchandise from top to bottom. There were some cardboard clearance bins in the front of the store that held some cool T-shirts with pop culture references on them.

Plus, there was a "buy two, get two free" sale going on at the time, so the price was right. A store associate with facial piercings and turquoise hair let us know that there was a sale of backpacks going on at the time. Even though it was the middle of the day on a weekday, the store was still packed with shoppers.

Everyone who came inside seemed enchanted with the offerings in the store and excited to find their own fandom represented.

In the '90s, Hot Topic sold a lot of skull and spike-adorned accessories.