Jul 20, 2007

U.S. teen retailers seek edge for back-to-schoolBy Regan E. DohertyToday.Reuters.com

Chicago, July 20 (Reuters) – The back-to-school shopping season has already begun, but the forecast for U.S. clothing sales appears cloudier than in years past.

With factors such as higher gas and grocery prices weighing heavily on consumers’ wallets, many industry insiders are concerned about a potentially lackluster season.

Almost half of American parents say they will keep back-to-school apparel spending to a minimum this fall, buying only replacements for garments their children have outgrown, according to a survey by America’s Research Group.

Spending on clothing is expected to be sluggish, with consumers laying out an average of $232 for the season, compared to last year’s $228. Electronics purchases, however, are forecast to surge 13 percent.

Apparel companies are looking for ways to ensure a strong fall season in the face of weak sales forecasts and increasing teen demand for high-tech gadgets such as mobile phones and iPods.

“Retailers have to be inventive in getting kids into the mall,” said Liz Pierce, analyst at Roth Capital Partners, citing promotional efforts such as e-mail offers, music tie-ins and coupons.

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