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Weak Sales Predicted for Back-to-School As Parents Worry About Money
Charleston, SC, July 24, 2008... Nearly three in ten (29.1%) of American parents say they will spend less this year on back-to-school purchases and a whopping 44.5% of those say it's because they have "less money," according to a Consumer Mind Reader (TM) survey conducted by America's Research Group (ARG). Others said the cause for reducing spending for their children’s return to school was due to "higher debt" (28.6%), and "higher gas prices" (22.7%).
Based on the survey findings, Britt Beemer, ARG Chairman and Founder, predicts back-to-school sales will be extremely soft in 2008, in the range of minus two percent (-2.0%) from last year to plus only half a percent (0.5%). "Overall, I expect sales to be down 1.5% compared to last year, because parents are only buying what their kids have to have," Beemer said.
According to the survey data, nearly half (46.9%) of parents will buy only the necessary minimum, supplementing those purchases later during the Christmas shopping season. They will be seeking bargains, too. Only 1.5% of parents say they will pay full retail price for their children's clothes/shoes compared to 9.9% last year.
To complete a gloomy picture for retailers, 35.2% of parents will wait until Labor Day Weekend to complete their back-to-school shopping. Beemer says that this is the highest percentage of late back-to-school shoppers in the last seven years, eclipsing even 2005 when 26.3% of parents planned to wait until Labor Day Weekend.
This year the top three stores preferred by parents are Wal-Mart at 15.4%, JCPenney at 11.5% and Target at 7.6%. Over the last seven years, Sears/Kmart combined have seen the biggest decline from 14.1% to 7.4%
The study of 1,000 telephone interviews with adults was conducted July 8 to July 10, 2008 with an error factor of plus or minus 3.8%.
Thanks to his expertise in consumer behavior since founding America's Research Group twenty-nine years ago, CEO Britt Beemer is a key resource and advisor to leading brands and top retailers in the nation. His new book, The Customer Rules, will be published by McGraw-Hill in September 2008.
Contacts: Britt Beemer, ARG, Tel: 843 345 0939
BBA Communications: Barbara Burns / Eve Edwards
Tel: 212 486 1140 / 516 859 3402