Back-to-School Spending Starts in July

A new US consumer poll from the NPD Group shows that spending on clothes and accessories for the new school year started earlier than last year, but remains at roughly the same level. The back-to-school period, now the second largest retail season, is an important indicator for the upcoming holiday season.

Many retailers had launched their back-to-school programs by mid-July this year, driving 10% more consumers than last year into the stores before August 1st. On average, consumers said they will spend $372 per child in the run-up to the new school year - slightly higher than last year's $367.

The NPD Group points out that, although spending has been higher than predicted, consumers are by no means extravagant. The survey identifies 'value' as the main purchase influencer in this year's back-to-school season, followed by 'required by school', 'child wanted it', 'replacement item'. 'Fashionable and trendy' comes bottom of the list.

Mass merchants such as Target and Wal-Mart remain the top choice for back-to-school shopping, followed by specialist clothing stores that cater for young adults and teens. According to Marshal Cohen, Chief Industry Analyst at the NPD Group, consumers will be able to spend a little more on clothing this year thanks to declining prices for electronics. He predicts that demand for computers, digital cameras and cell phones will continue to be strong, but stresses that 'the quest for value remains very high, due to the increase in fuel prices and the impact it has on the mid-to-lower income brackets'.

NPD collected information for the spending poll between July 28 through August 11, 2005 using NPD's online consumer panel. Approximately 26,941 females and 8,272 males participated.

The company is online at www.npdgroup.com

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.

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