Back-to-school shopping kicks off early
Last updated Tuesday, July 29, 2008 5:13 PM CDT in Business
By Kimberly Morrison
The Morning News
Back-to-school shopping kicked into gear early this year with more bargain hunting than previous years, a Citigroup analyst said.
Fifty-two percent of consumers surveyed had started or completed back-to-school shopping by July 21, compared with 33 percent in the same year-ago period, according to Citigroup Global Markets research.
Deborah Weinswig, retail analyst with New York-based Citigroup Global Markets, said in a Monday note that aggressive marketing, bargain-hunting consumers and lingering tax rebate checks pushed consumers to shop early.
Discount retailers like Wal-Mart Stores Inc. stand to benefit the most.
Washington, D.C.-based National Retail Federation found that 73 percent of consumers will head to discount stores for their purchases. A recent federation survey found that one-fifth of parents have set aside a portion of their stimulus checks for back-to-school purchases.
"This year's back-to-school shopper is a bargain hunter at the core," said Phil Rist, vice president of strategy at BIGresearch, a Worthington, Ohio-based research firm.
Wal-Mart began its back-to-school promotions July 5 with deals like a $398 Toshiba laptop, 50 percent off eyeglass frames and "a week's worth of outfits," meaning five tops and five bottoms, for $60.
Sam's Club last week said it was offering $15 gift cards to college students with purchase of a membership.
"We are encouraging our customers to shop early so they can stretch their purchases throughout the summer," said Shannon Frederick, a Wal-Mart spokeswoman.
Back-to-school spending for kindergarten through 12th grade this year is estimated to reach $20.1 billion, with the average family spending $594 on school-related purchases, according to the retail federation.
Weinswig said more shoppers will be buying apparel and cutting back on big-ticket electronics purchases like iPods and computer accessories.
So what are the must-have items for back to school?
Graphic and print tees were the top item for both boys and girls, followed by hoodies, skinny jeans and cargo pants. Most survey participants said that the "hot" colors were neutral tones - gray, navy, off-white, and black.
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