Back to school spending expected to increase this year
Summer is almost over, and with that comes parents and children rushing into stores to stock up on back to school supplies for the upcoming academic year. Although the recent economic recession put somewhat of a damper on sales in all industries, school supply retailers were also negatively impacted, as many families cut back on costs. However, industry experts anticipate that that will change this year, as spending for the back to school season is expected to increase.
Parents increasingly spending on supplies
According to recent research from the National Retail Federation (NRF), the total amount of back to school spending this year is anticipated to reach $30.3 billion for elementary, middle and high school students. When combined with the supplies purchased for college students, the total is estimated at $83.8 billion. As the economy steadily improves, parents will be purchasing items that their children might not have had last year, the report states.
Average spending for each student in grades K-12 will reach $688.62. This is a significant increase from 2011's average, which was $603.63. Parents are expected to spend more on clothing this year, with the average amount at $246.10. Shoe purchases will come in around $129.20 for each child. Electronics needed for school activities will see an increase from last year, as 59 percent of parents say they will buy these products, compared to 51 percent last year. When it comes to supplies such as notebooks, writing utensils and bookbags, the average spending amount is $95.44, says NRF.
"When it comes to their children, there’s nothing more important to a parent than making sure their children have everything they need, even in a tough economy – and especially when it comes to back-to-school shopping," said NRF president and CEO Matthew Shay.
Positive July sales help boost back to school spending
Clothing retailers did better than anticipated during the month of July, according to data from Thomson Reuters. Many experts believe the uptick in sales at these stores signals a rise in back to school clothing spending. The purchasing of necessary school supplies is the retail industry's second largest selling period after the Christmas holiday. Many retailers are now readying their stores in preparation for the expected influx of parents and children. Ken Perkins, president of Retail Metrics, believes that based on the information of better-than-expected sales in July, retailers will be stepping up their efforts to bring in more shoppers, leading to optimism within the industry.
"We are far more encouraged about [back-to-school] than we were coming out of June," Perkins said.
