Back-to-School Spending Expected to Drop

According to the National Retail Federation’s 2009 Back to School Consumer Intentions and Actions Survey, conducted by BIGresearch, the average family with students in grades kindergarten through 12 is expected to spend 7.7 percent less on school merchandise this year.

Respondents say the economy is having a major impact on back-to-school spending, with 85 percent of consumers making some changes to back-to-school plans this year as a result, including hunting for sales more often, planning to spend less overall, and purchasing more store brand/generic products.

“The economy has clearly changed the spending habits of American families, which will likely create a difficult back-to-school season for retailers,” says Tracy Mullin, president and ceo of the Washington, D.C.-based NRF. “As people focus primarily on price, strong promotions and deep discounts will ultimately win over back-to-school shoppers this year.”

Spending in most back-to-school categories is forecast to decrease, except in electronics, which is expected to increase 11 percent. According to the survey, the average family plans to spend $167.84 on electronics; $204.67 on clothing and accessories; $93.59 on shoes; and $82.62 on school supplies.

Nearly seventy-five percent of respondents say discount stores will be the most popular destination for back-to-school shopping, while nearly 21 percent plan to shop at drug stores. In addition, 54 percent plan to head to department stores; nearly half (48.4%) will shop at a clothing store; and 41.2 percent will visit office supply stores.

“Americans will be looking far and wide for the best back-to-school deals, using newspaper ads, online promotion codes, and a lot of comparison shopping before making decisions,” said Phil Rist, executive vp, strategic initiatives, BIGresearch. “This year, many parents hope to begin back-to-school shopping early to spread the spending out over a longer period of time.”