story by Kim Souza
ksouza@thecitywire.com
Back-to-school shopping has become a major event among retailers who use the time to boost sales in the dog days of August, but the boost may not be as much this year. The National Retail Federation expects consumers will dole out $24.9 billion this year for back-to-school items among families with children in grades K-12. That equates to about $630.36 per family, down from the $669.28 average spent a year ago.
The annual survey completed by Prosper Insights & Analytics found parents to be more cautious with their spending this year.
“As seen over the last 13 years, spending on ‘back to school’ has consistently fluctuated based on children’s needs each year, and it’s unlikely most families would need to restock and replenish apparel, electronics and supplies every year,” said NRF President and CEO Matthew Shay. “Parents this summer will inventory their children’s school supplies and decide what is needed and what can be reused, which just makes good budgeting sense for families with growing children."
While school spending may be lower, Shay believes consumer spending will improve overall in the remainder of 2015 “after a shaky first half of the year.”
For those who have to restock what their children need for school, 92.7% will purchase new apparel, spending an average of $217.82. Most (94.1%) will head out for new school supplies, spending an average of $97.74. Families will also spend $117.56 on new shoes.
ELECTRONICS, BUDGET STRAIN
Analysts said part of the reason for the average household decline in spending this year relates directly to deflationary priced electronics, which also do not have to be replaced every year. Last year 58% of parents said they would buy electronics for their children with an average spend of $212.35. This year the average electronics spend is $197.24.
Fayetteville-based Field Agent did their own back-to-school research will more than 500 families across the U.S. in all income demographics. The results indicate that many parents are struggling to cover the costs of the children’s back-to-school needs. Nearly 8 out of 10 Field Agent respondents said back-to-school shopping was a strain on their personal budget. In total, 88% of the respondents said they had to save ahead for back-to-school shopping. They also cited price as the No. 1 priority when purchasing school supplies.
Product quality, brand name and in-store convenience were the other priorities mentioned by consumers. The Field Agent survey also found that 88% of parents rely on the school supply lists provided by their child’s school.
When it comes to apparel shopping, 53% of the parents said their purchases were strongly influenced by their children. Nearly two-thirds of the respondent say they will shop between two to three stores for back-to-school purchases. Only one in four said they plan to buy school supplies online and 41% will make no online purchases related to back-to-school.
Field Agent found that its respondents favor these five stores for back-to-school shopping: Walmart, 87%; Target, 76%; Staples, 33%; Walgreens, 30%; Dollar Tree, 29%.
The most commonly mentioned frustration by consumers in the Field Agent survey was the inconvenience associated with stores that advertise sales and then don’t carry enough of the items to suit demand.
“Savvy and budget-conscious parents today have plenty of experience when it comes to looking around for great deals and value-add promotions, and it seems mom and dad will use that to their advantage this summer,” said Prosper’s Principal Analyst Pam Goodfellow.