BACK-TO-SCHOOL SHOPPING

8/8/2008

Fort Worth, TX – – Two recent surveys on consumers' plans for back-to-school shopping could signal trouble for retailers. The market-research company, NDP Group, conducted an extensive online survey of consumers and found that 66% of those surveyed planned to spend less on back-to school shopping. Even more difficult for retailers to contend with, the survey reported that 55% planned on changing where they did their back-to-school shopping. The international accounting and consulting firm of Deloitte surveyed more than 5,000 consumers in July. In the survey 71% stated that they would reduce their spending on back-to-school items. Some 90% of those interviewed indicated that they would change their shopping habits and do more of their shopping at dollar stores, off-price stores, and office-supply stores.

The thing responsible for this gloomy retail outlook is, of course, the economy. Buffeted by declining home values, rising unemployment, $4-per-gallon gasoline, and a declining stock market, American consumers have had their confidence in the economy shaken. It is not surprising that economic problems might find their way into the planning of back-to-school purchases. On the other hand, it is easier to preach austerity than it is to practice it. It is also hard to ignore the kids when they assert their demands for more traditional types and levels of spending on back-to-school items.