Report: BTS Spending Will Loosen Up Amidst Recovery…

 

According to the National Retail Federation’s “2010 Consumer Intentions and Actions Back to School Survey,” the average American family will spend $606.40 on clothes, shoes, supplies and electronics during this year’s back-to-school season. This compares to average spending of $548.72 and $594.24 in 2008 and 2009, respectively.

 

“We are encouraged by the fact that parents are eager to start their back to school shopping this year, but the industry still remains cautiously optimistic about recovery,” said NRF President and CEO Matt Shay. “As the second half of the year gets under way, retailers will gauge their customers' spending appetites, which often serve as a bellwether for the all-important holiday season.”

 

Total spending on school-aged children in grades K-12 is expected to reach $21.35 billion, according to the NRF, while combined K-12 and college spending will reach $55.12 billion, making it the second biggest consumer spending event for retailers behind the winter holidays.

 

Obviously, an unsteady economy will continue to play a significant role in BTS preparations, evidenced by the fact that an estimated 44.3% of Americans will buy more store brand and generic products compared with 41.7% last year. Likewise, more parents said they will comparative shop online (30.3% vs. 26.4% in 2009.) The state of the economy will also impact some families' lifestyles, such as deciding whether their child should attend private school (8.1% this year vs. 5.7% in 2009).

 

Among other findings, spending on apparel will take up the majority of consumers' budgets with parents of school-aged kids expected to spend an average of $225.47 on jeans, shirts and other types of clothing. For electronics, parents will spend an average of $181.60 on electronics and computer-related school needs. Families will also spend an average of $102.93 on shoes and $96.39 on school supplies.

 

For the locations BTS customers will shop this year, the NRF report suggests that 71.2% will head to a discount store while 53.9% will visit department stores. Other popular shopping destinations include clothing stores (49.0%), electronics stores (23.0%), office supply stores (41.2%), drug stores (19.5%) and thrift stores (17.0%). More people will shop online this year as well (30.8% vs. 22.2% last year.)

 

Nearly half (47.6%) of BTS consumers will begin shopping three weeks to one month before school starts, while 24.8% will start one to two weeks prior. 21.6% said they will start two months before the school year and 3.0% will wait until the week school starts or after.

 

For college students, the survey found that spending will remain similar to last year ($616.13 compared to $618.12 in 2009). Total spending on back-to-college merchandise is expected to reach $33.77 billion.

 

College students and their families will spend the most on electronics, though not nearly as much as last year. The average family will shell out $236.94 on computers, cell phones, MP3 players, cameras and other electronics; down from the $266.08 estimated last year when spending on electronics reached an all-time high. Other expenditures include shoes ($62.20), collegiate branded gear or supplies ($36.26) and school supplies ($62.91).

 

The NRF survey found that just over half (51.8%) of college students will live with mom and dad, down from 58.5% who lived at home last year when money was tighter and jobs were more scarce. Nearly one-quarter (23.0%) will live off campus in an apartment or house, 18.8% will live in a dorm room or other college housing and 2.0% will go Greek and live in a sorority or fraternity house.

 

When asked how the state of the U.S. economy will impact their back-to-college purchases, 34.1% of families responded they would buy more store brand or generic products, up from 32.5% last year. Families will also shop online more often (18.2%) or share or borrow textbooks instead of buying new ones (19.3%). One in five said their back-to-college plans will not change.

 

Most college students (53.8%) will buy what they need from discount stores, 42.5% will head to department stores and 36.5% will shop at office supply stores. Other popular shopping destinations will include online (28.6%), clothing stores (28.2%), electronics stores (18.0%) or drug stores (17.0%). Forty-three percent are planning on buying decor, apparel or other school items from their college bookstore.

 

The survey found one-third (33.1%) of college shoppers will begin hitting the stores one month before school starts, with 23.2 % preferring to wait a bit longer and go one to two weeks before school starts. One in five (20.2%) will start at least two months before school starts, 12.6 % will wait until the week school starts and 10.9% will go after they've already started school.