Quick Links:
  • CHRISTMAS 2007
  • News and PR
  • Mind Readers Data
  • Mind Readers Topics
  • Furniture Index
  • White Papers
    		•

    Back-to-School Spending to Grow Meagerly in 2007 As Parents Continue 3-year Frugal Outlook Predicts Britt Beemer CEO of ARG

    Charleston, SC, July 19, 2007
    Almost half of American parents (48.7%) say they will keep back-to-school spending to a minimum this fall, buying only replacements for garments their children have outgrown, according to a new Consumer Mind Reader™ national survey conducted by America’s Research Group (ARG). The survey data reveal a three-year trend: 48.0% of parents said they would buy "the minimum" in 2006 and 52.3% in 2005.

    "Parents are trying to cut back spending wherever they can as the money pinch tightens this year," says C. Britt Beemer, Chairman of ARG, "thus retailers should expect a lackluster back-to-school season with growth around 2.5% over 2006."

    An overwhelming 90.3% of those parents who are spending less this year say that having 'less money' is the cause. That figure compares to last year’s 43.2% who said 'less money' was the reason. Over nine in ten parents (92.6%) also say they will spend less on each item this year compared to 75.3% last year and 32.8% in 2005. The reason most give is higher gas prices, Beemer says.

    Clothing will be the biggest purchase category in 2007 with 85.3% of parents saying they plan to spend more on apparel; 14.7% will spend more on shoes. More schools (23.7%) are requiring uniforms this year, compared to 15.8% last year and 15.4% in 2005, which will impact clothing sales, according to Beemer.

    Although they plan to spend the minimum, more parents (23.7%) plan to extend back-to-school purchases through the Labor Day weekend this year. Only 18.5% planned to shop over Labor Day weekend last year.

    Almost a third of parents (30.8%) are not sure where they will shop for back-to-school clothing, but some indicate clear store preferences:
    • Wal-Mart at 14.5% in first position
    • JCPenney, 9.7%
    • Old Navy, 8.7%
    • Sears, 7.6%
    • Target, 4.8%
    • American Eagle, 3.9%
    The study consists of 1,000 telephone interviews conducted Thursday through Sunday, July 5 – 8, 2007 at ARG headquarters in Charleston, SC. The error factor is plus or minus 4.3%.

    America’s Research Group (ARG) is the consumer-behavior marketing firm that provides clients the insight, strategy and tactics to increase market share. ARG’s expertise in consumer behavior has made it a key resource and advisor to leading brands and top retailers in the nation for 27 years.