School Bells Ring Profits

Released on: Wednesday, September 6, 2006 8:00 AM

        

Back to School Spending $17 Billion

Fall retail spending is experiencing a welcome warming trend. Back-to-school spending is estimated to reach $17.6 billion, up nearly $4.2 billion from fall 2005, with $2.6 billion in sales going toward online shopping.  The biggest gains will be enjoyed by fall apparel, electronics, and computer related purchases. 

The average family with school age children will be spending $527, nearly $100 dollars more than last year.  While spending will jump in all categories, electronic and apparel purchases will fuel this year’s back-to-school growth.  It’s definitely time for more personal technology. Total spending on electronics or computer-related equipment, such as home computers, laptops, PDAs, or calculators, is estimated to increase by more than $1.5 billion this year.  

Source: National Retail Federation

Clothing and accessories will ring up $7.6 billion of the $17.6 billion dollar back-to-school pie. Computers and electronics purchases will reach $3.8 billion, new school shoes will fuel $3.3 billion in sales, and school supplies will be $2.9 billion.

Parents Shopping Tips :  Your child’s school is likely to have a dress code and a required school supply list.  Having both these items in hand and in mind can save you time and money.  To avoid unnecessary purchases, go through last year’s fall, winter, and spring items.  Weed out the worn out and too small items.  Items that are too small can be stored in an airtight container for a younger child or donated to help those in need. Take advantage of the end of summer sales.

Where Families Shop:  The most likely back-to-school shopping stop is the local discount store.  Nearly three-fourths (72.2 percent) will head to a discounter to shop for back-to-school items.  Specialty and department stores will benefit from more consumer dollars and the ‘uniform effect’.  More than half of households (53.3 percent) will be spending time and dollars at their favorite department store, office supply stores (35.8 percent), specialty stores (30 percent), and drug stores (16.3 percent).  Over 15 percent will shop online, up slightly from last year. 

School Uniform Effect:  Apparel is expected to be a big performer, with the average consumer expected to spend $228.14.  One in five parents with school-aged children says their child is required to wear a uniform. Those parents will be spending slightly more on apparel for the beginning of school and will be more likely spend their clothing dollars at department and specialty stores. Other popular items on consumers’ back-to-school lists include shoes ($98.34) and school supplies, such as notebooks, folders, pencils, backpacks, and lunchboxes ($86.22).

SCHOOL FACTS

Enrollment in public elementary and secondary schools grew 22 percent since 1985 with the fastest public school growth occurring in the elementary grades (pre-kindergarten through grade 8). Private school enrollment grew more slowly, rising 14 percent.  

Elementary School-Age Children

• Nationally, there are 37.9 million elementary age children, ages 5-13.
• Utah and Alaska, in many respects, have the nation’s youngest citizens.  Utah and Alaska have the highest proportion of students falling into the 5 to 13 age group, with 15 percent each.  The national average is 13 percent.
• California has the highest total of elementary school-age children with 4.8 million, followed by Texas with 3.1 million.

Sources: National Retail Federation, US Census Bureau, Digest of Educational Statistics

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