Jul 20, 2009

Back-to-school sales start earlyBy Michelle DunlopHeraldNet.com

Everett, WA — School’s out for summer, but school supplies are in.

And retailers are rolling out deep discounts early as consumers are expected to scale back their back-to-school spending.

“The economy has clearly changed the spending habits of American families, which will likely create a difficult back-to-school season for retailers,” said Tracy Mullin, president of the National Retail Federation.

The group recently released the results of its back-to-school shopping survey, which predicts about $47.5 billion in retail revenue from school and college spending nationwide. Shoppers for children, kindergarten through 12th grade, will spend an average of $548.72 on school merchandise, down 7.7 percent from last year.

Spending for college students is expected to increase about 3 percent over last year, with more students living at home. Fewer students are expected to attend college this fall, driving down overall retail revenue from college students, the study found.

“Parents want to give their children everything necessary for the best education, but, this year, living at home may need to be a concession students need to make,” said Phil Rist, an executive vice president with BIGresearch, which conducts studies for the retail federation. “The trend of students living with their parents will disproportionately impact home furnishings retailers, as fewer people may be purchasing kitchen items, home décor and furniture.”

Read complete article.