The back-to-school shopping season is swiftly drawing to a close, and with it, retailers can now assess their recent performance. Merchants have a brief lull before the holidays kick off, and they can use this opportunity to predict how they might fare in the coming months. 

According to Reuters, August's back-to-school sales exceeded expectations, but only because of considerable discounts. Chains such as Zumiez Inc, Buckle and Costco all beat out their projections, but an increase in retail merchandising promotions from 2012 may negatively affect their margins. Some stores offered discounts as steep as 50 percent. 

Shoppers buying more durable goods also contributed to weaker sales for discretionary items like apparel. Bloomberg reported that after consumers postponed purchases like automobiles and homes during the past few years, they are now more willing to invest in these big ticket items. 

However, the nature of large item purchases means that they will typically be longer-lasting. This could result in an uptick to retail sales in the coming months, as spending habits normalize. Additionally, Bloomberg noted that back-to-school spending may still increase once teenagers know what their friends are wearing. However, the source reported that retailers may have to retain considerable discounts to remain competitive. 

This entry was posted by Retail Pro on Friday, September 6th, 2013 at 12:32 pm .