Jul 25, 2010

Retailers’ back-to-school assignment: Boost salesBy Joan VerdonNorthJersey.com

Retailers are preparing for this year’s back-to-school shopping season as if it’s a test they can’t afford to fail.

While the two leading retail trade groups are forecasting pent-up demand and a recovering economy will let stores earn easy A’s this year, retailers aren’t taking anything for granted. They’re worried the still-skittish American consumer could hit them with some surprises if they don’t do their homework.

A survey by the National Retail Federation found consumers expect to spend about 10 percent more for back-to-school clothes and supplies this year compared with last year. Michael Niemira, chief economist for the International Council of Shopping Centers, is predicting back-to-school-related sales, as measured by the Commerce Department, for the three-month period of July through September, will increase “a solid 5.4 percent, potentially the strongest showing since 2005,” when they rose 6.4 percent.

Other forecasters are more pessimistic. C. Britt Beemer, chairman of America’s Research Group, said surveys his firm conducted with consumers this summer show that for many parents money still is tight. Beemer predicts a “skimpy increase” of zero up to 3 percent, compared with the robust rebound some are expecting.

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