Back-To-School Gets Mixed Grades

By Faye Brookman, special to GMDC

So far, retailers don’t know what marks to give back-to-school sales. The statistics reveal shoppers want to buy, but not all retailers are recording the gains they expected. To date, several chains are reporting flat or down sales for July and into mid-August.

That said, expectations are high. College back-to-school spending alone is targeted to exceed last year by nine percent with students and parents spending a combined average of $956.93 this year, up from $880.52, according to the annual survey from the National Retail Federation. The NRF predicts families with school-age children will spend $563.49 on back-to-school products, up 6.9 percent.

On the downside, many families are strapped more than in past years by rising fuel prices and other higher expenses. Some retailers think that could favor sales in stores closer to home such as drug or food stores. Others, however, suggest consumers will make a destination trip to a category killer for keen prices. Then again, mall apparel retailers such as Abercrombie and American Eagle are feeling the pressure with their hip apparel sales being down mid-single digits to date in back to school.

The timing of back-to-school adds to retailers’ uncertainty. The International Council of Shopping Centers said 20 percent of Americans planned to start shopping in July, and retailers have traditionally benefited from a July surge. But maybe no more. One reason: In the past it was the east coast schools that started late, but now more are going in that direction. For example, Florida and Texas were among the states pushing back the first day of school this year to a later time. Later start days delay the surge in sales merchants formerly looked for in July. Adding to this is the fact that some buyers are saying that back-to-school merchandise is getting set up in the stores later because of excess summer seasonal product that had to be cleared out.

Adding to these woes is that experts have noticed that retailers this year have been less splashy with back-to-school sales.

However, there are retailers that are definitely polishing apples and working to become teachers’ pets. Target, for example, featured shopping supply lists by grades for shoppers to help ensure they bought all of the right needs. Staples touted “insane” deals such as 15 cent filler paper and free movie tickets with the purchase of $50 or more. Staples, as usual, had clever television advertising for back-to-school – this year a mom and dad enacting an old Saturday Night Live cheerleader skit.

And, late starts to back-to-school merchandising might not be all bad. For example, drug chains and supermarkets tend to save back-to-school advertising until closer to the schools’ start date for last minute consumers. And that’s not a bad idea either, since research shows 35 percent of shoppers wait until they go to school to find out what other needs teachers want as well. Others just want to see “what everyone else has” before buying.


Discussion Questions: What do you see as the most important factors in consumers
back-to-school purchasing decisions? Is price, for example, a more important
factor this year because of economic factors such as high energy prices,
rising food prices, tight consumer credit, etc.? What does it all mean for
retailers looking to grow back-to-school seasonal sales?