via It’s back to stores for back to school, clarionledger.com
For the past several weeks, retailers have been gearing up for the onslaught of parents trying to make sure their kids are well-equipped for the school year. Well-prepared moms and dads who planned ahead will be sitting comfortably at home in the next few days happily sipping their sweet tea, while the rest of us plunge into the nightmarish stampede of parents desperately trying to find the right 3-by-5 cards or the correct brand of No. 2 pencils specified on their kids’ supply lists.
According to some retail experts, this back-to-school season should provide a much-needed infusion of cash, as financial worries have eased for some. According to a recent study by the National Retail Federation, K-12 and college shopping trips are expected to yield nearly $76 billion, well above last year’s $68 billion.
“Families are still looking for bargains, but there are signs that they are less worried about the economy than in the past,” NRF President and CEO Matthew Shay said. “Heading into the second half of the year, we are optimistic that overall economic growth and consumer spending will continue to improve as they did in the first two quarters of the year. We fully expect retailers to be aggressive with offering great deals both in stores and online for back-to-school shoppers. And retailers will keep a close eye on inventory levels as families spread out their shopping throughout the summer.”
The organization enlisted Prosper Insights and Analytics for the annual survey, which found that families with children in grades K-12 plan to spend an average of $673.57 on apparel and accessories, electronics, shoes and school supplies, up from last year’s $630.36 for a total of $27.3 billion, according to the survey. That’s almost a 10 percent increase over last year’s tally.
There is also expected to be a surge in spending, which coincides with states’ sales-tax holidays, in which consumers can avoid paying sales tax on certain items. Mississippi’s sales tax holiday is this weekend and allows tax-free sales of clothing and footwear up to $100.
The NRF notes that it has observed over the years that each year’s back-to-school spending follows a pattern, in which families typically splurge on supplies one year, followed by a year in which they avoid making larger purchases on more-durable items such as backpacks and computers. The pattern then repeats itself; this year is expected to be a “stock-up” cycle.
According to the survey, K-12 consumers plan to spend $9.54 billion on clothing (purchased by 95 percent), $8.27 billion on electronics such as computers or calculators (57 percent), $5.12 billion on shoes (94 percent) and $4.37 billion on school supplies such as notebooks, folders, pencils, backpacks and lunchboxes (96 percent). Parents say they will spend an average $235.39 on clothing, $204.06 on electronics, $126.35 on shoes and $107.76 on school supplies.
Even with the expected good performance, parents are still bullish on spending money and will be looking for sales. “The budget-conscious consumer is not forgetting about price, quality or value, and we continue to see this when it comes to back-to-school shopping,” Prosper Principal Analyst Pam Goodfellow said. “That is why many parents are taking advantage of shopping early, scouring ads and websites for the best deals, and taking advantage of free shipping with online purchases.”
Among other findings from the study:
More families are getting their shopping done early. Nearly three-quarters of parents started their shopping several weeks ago, with the number of procrastinators down to about 22 percent.
More parents are shopping online. Nearly half of parents have shopped online for school supplies, or plan to. Still, most shoppers choose discount stores.
Older students = more expense. College students and families with children in college plan to spend an average of $888.71, according to the survey. “Whether it’s laptops for class or mini-fridges for the dorm, college simply costs more than the lower grades,” Shay said. “Some of these big-ticket items can last all four years, but when they need to be replaced it’s a bigger investment than pencils and lunchboxes. But retailers are ready to help students and parents alike stretch their dollars and make the investment in college pay off.”
For more on our back-to-school shopping plans, visit https://nrf.com/news/top-trends-2016-back-school-and-college-shopping.