Reading, writing & retail

Aug 10, 2009 (The Post and Courier - McClatchy-Tribune Information Services via COMTEX) -- ZZFOP | Quote | Chart | News | PowerRating -- Nicole Thomas of James Island doesn't plan to buy as many back-to-school clothes this year for her two school-age daughters.

"We will probably make do with all the clothes we have and mix and match the new and old as far as we can stretch them," the stay-at-home mom said while shopping at a local Target.

She also planned to take advantage of this past weekend's tax-free sales on back-to-school purchases, something she's never done before.

Ellen Jung of Mount Pleasant searched Citadel Mall for bargains for her three school-age children.

"I expect better sales this year," said Jung, also a stay-at-home mom.

She picked out a new outfit in Belk's children's department for her 10-year-old daughter while her two sons rested on display mattresses in the home furnishings area.

"I'm looking for bargains," Jung said.

Lesline Manasse of Edisto Island towed around a shopping list for her daughter, 5. It included everything from baby wipes to hand sanitizer. The disabled specialist picked up a few clothing items at Citadel Mall, but she's waiting until cooler weather for other purchases.

Like Manasse, Jung and Thomas, bargain hunters are out in force this year.

Because of the lingering recession, many parents are buying only what they need, using coupons and checking for sales, according to the National Retail Federation's 2009 Back-To-School Consumer Intentions and Actions Survey, conducted by BIGresearch.

The average family with students in grades K-12 is expected to spend $548.72 on school merchandise, a drop of 7.7 percent from $594.24 in 2008.

Total spending on back-to-school purchases is expected to reach $17.42 billion for those 18 and under. Last year, school-supply buys were expected to surpass $20 billion.

The National Retail Federation survey signals that the economy is having a major effect on back-to-school spending as four out of five Americans (85 percent) have made changes to back-to-school plans this year.

Some of those changes affect spending, with 56.2 percent of back-to-school shoppers hunting for sales more often, 49.6 percent planning to spend less overall, 41.7 percent purchasing more store brand/generic products and 40 percent planning to increase their use of coupons.

Habit forming

The economy is also affecting lifestyle decisions with respect to school.

Nearly 12 percent said their children will cut back on extracurricular activities or sports, and 5.7 percent said the economy will play a part in whether their child attends private or public school.

"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 and CEO of the National Retail Federation. "As people focus primarily on price, strong promotions and deep discounts will ultimately win over back-to-school shoppers this year."

Consumer researcher Britt Beemer, founder of Charleston-based America's Research Group, predicts sales will be off even further than the National Retail Federation's outlook of 7.7 percent.

"I think sales will be down 8.5-12 percent from last year," Beemer said. "You've got over half of American parents buying for their kids only what they have to buy. You will see a lot of parents buying for their kids and wait until later to buy what they need and give as Christmas gifts."

Ellen Davis, federation vice president, agreed.

"People may be putting off purchases until the weather cools down, or they will wait and buy traditional gifts at Christmas time," she said.

Beemer's research also shows another change in buying habits this year.

"For the first time in 30 years, parents will be shopping without their kids by 20 percent less," Beemer said. "When the kids are there, they want to go to certain stores, but their parents can't afford it. There will be less Abercrombie (& Fitch) and Hollister sales and more Target and Walmart sales. Consignment and thrift stores will have a big increase. You are just seeing people downgrade."

Tax incentive

Spending in most back-to-school categories is expected to decrease, with one bright spot: electronics.

With personal laptops and desktop computers increasingly affordable for most families, spending on electronics and computer equipment is expected to increase 11 percent, according to the federation's survey.

The average family plans to spend $167.84 on those purchases, compared to $151.61 last year, the survey found.

New father Larry Preston planned to spend more than the average.

The Mount Pleasant bookstore manager has been eyeing a new computer for weeks, but he waited until tax-free weekend that ended Sunday to plug into the savings at HH Gregg in North Charleston. Preston was looking to spend around $600 or $700, a tax savings of around $50.

"That's a lot of money in this day and age," he said.

Ashley DeAntonio of West Ashley could be one of those at the electronics store, though she said she won't spend anything close to the average $548 on back-to-school purchases for her two young sons, 6 and 4.

"I'm just not average," the stay-at-home mom said.

DeAntonio will be among those buying clothes since she said she always buys new shoes for her sons this time of year. Families will spend an average of $204.67 on clothing and accessories, $93.59 on shoes and $82.62 on school supplies, according to the survey.

Marykay Acheson of Ravenel won't be spending any money on clothes for her two daughters, Olivia, 10, and Eva, 7.

"We are using some things from last year," Acheson said while going through her list of schoolroom supplies at Target.

Up and coming

While discount stores and office supply outlets will be among the most popular destinations for back-to-school shoppers, traffic at drug stores is expected to rise substantially.

According to a National Retail Federation survey, 21.5 percent of families will shop at drug stores for back-to-school items, a more than 3-point gain over last year's 18.2 percent.

Drug stores have become more popular recently as they have expanded their merchandise mix beyond health and beauty products to include school supplies, small electronics and some groceries.

In addition to discounters and drug stores, more than half of back-to-school shoppers will head to department stores (54.4 percent), nearly half (48.4 percent) will drop some money at a clothing store and 41.2 percent will visit office supply shops, according to the survey.

About 22 percent will go online to shop, 20.8 percent will check out electronics stores and 18.2 percent will visit a thrift store.

While many shoppers in South Carolina took advantage of the tax-free weekend for back-to-school items, nearly a third will wait until one to two weeks before classes begin. About 2.5 percent won't buy anything until after that, hoping to take advantage of clearance sales and postpone purchases as long as possible.

Reach Warren Wise at 937-5524 or wwise@postandcourier.com.

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