Back-to-School Spending to Increase 5%
The average U.S. household is projected to spend $615 on back-to-school clothes and supplies this year, up from $590 last year, according to a survey by Brand Keys.
Thanks to a weakened economy, the brand and customer loyalty research consultancy predicts only a 5% annual increase, about half of what the annual increase has been since the tracking began in 2001. Back-to-school spending, which includes students in kindergarten through high school, is expected to reach $18.3 billion this year.
“It’s not a banner year,” Robert Passikoff, president of Brand Keys, said.
For the eighth year in a row, people plan to spend the most on clothing, or $275, up 6% from $260 last year and on shoes, $110, a 10% hike over 2007. The increases are due to the tight economy and shoppers’ preference to forgo unnecessary expenses, Passikoff said.
“People are buying only the things they have to,” he said. “Computers and electronics aren’t areas we see people putting a lot of money into.”
Spending on computers, software and printers is expected to remain unchanged at $210, while school supplies are up 5% at $100 and books and study aids will rise 2% to $25, the survey said.
The preference for shopping at discount stores rose to 85% from 75%, compared to 55% at department stores and 50% at office supply stores. Perhaps the biggest change is online, where 40% of people said they would use that channel for their shopping, a 15% hike from last year. Passikoff attributes that rise to the soaring cost of gas prices.
Catalogs shopping also received a notable response gaining a 25% preference, while specialty outlets, with a 32% consumer preference, dipped from last year.
