Economy Dampens Back-to-School Spending
The National Retail Federation’s most recent back-to-school shopping survey, “2009 Back to School Consumer Intentions and Actions Survey,” shows that the economy will put some downward pressure on back-to-school and back-to-college spending this year.
The survey, conducted by BIGresearch, shows that the average family with students in grades K-12 is expected to spend $548.72 on school products, which is down 7.7 percent from $594.24 in 2008.
Total back-to-school spending is expected to be $17.42 billion in 2009.
Eighty-five percent of Americans said the economy has affected their back-to-school spending plans this year. Of respondents with children between the ages of 6-17, 56.2 percent looking for sales more often, 49.6 percent planning to spend less overall, 42.5 percent doing more comparative shopping with ad circulars/newspapers, 41.7 percent buying more store brand/generic products and 40.0 percent using coupons more often.
Additionally, 35.1 percent said they are making do with last year’s school items, 26.4 percent are doing more comparative shopping online, 11.4 percent are cutting back on extracurricular activities or sports and 9.6 percent shopping more online.
The economy is even affecting where children will be attending school in the fall, with 5.7 percent saying their decision on whether their children will attend private or public school will be impacted.
Nearly one in six, or 14.9 percent, says that their back-to-school plans will not change because of the economy.
Spending on electronics and computer equipment is expected to buck the overall downward trend and see an 11 percent increase, with the average family planning to spend $167.84 on these items, compared to $151.61 last year.
Families are also planning to spend $204.67 on clothing and accessories, $93.59 on shoes and $82.62 on school supplies.
Discount stores will attract the most back-to-school shoppers, with 74.5 percent of respondents saying they will shop there, followed by department stores (54.4 percent), clothing stores (48.4 percent), office supply stores (41.2 percent), online (22.2 percent), drugstores (21.5 percent), electronics stores (20.8 percent) thrift stores/resale shops (18.2 percent) and catalogs (7.9 percent).
Many Americans, or 44.4 percent of them, will start their shopping three weeks to a month before school begins, as they attempt to benefit from early promotions and spend over a longer period of time.
College students and their parents plan on spending an average of $618.12 this year, an increase of 3 percent from last year’s $599.38.
Total college spending is expected to reach $30.08 billion, meaning a total of $47.50 billion is expected to be spent on back-to-school and back-to-college shopping this year.
Fewer American say they will pursue and advanced degree this year, with 38.9 percent saying they will in 2009, compared to 48.1 percent in 2008.
More college students, or 58.5 percent of them, will be living at home this year, compared to 54.1 percent last year and 49.1 percent in 2007, according to the survey.
Families of freshmen will spend an average of $820.77 on back-to-college purchases, more than their upperclassmen counterparts.
This was the first year when the question of how the economy would affect spending was asked.
Sources:</strong
http://www.nrf.com/modules.php?name=News&op=viewlive&sp_id=756
