Fewer Consumers Expected to Spend Less on Back-to-School Items This Year

Overall, consumers feel better about the economy and are planning to spend more money and shop at more stores.

August 11, 2010

PORT WASHINGTON, N.Y. -- The NPD Group, Inc. found that overall, consumers are feeling better, have plans to spend more money and shop in more stores. In general, consumers indicated that they are feeling better about making purchases for back-to-school. That can be seen in the decreasing number of consumers that tell NPD they plan to spend less. This year 38 percent of respondents said they plan to spend less this year compared to last year??s 44 percent.

"We are certainly seeing signs that consumers are willing to open their purse strings," said Marshal Cohen, chief industry analyst for The NPD Group, in a press release. "Fifty-five percent of respondents told us they plan to shop in more stores this year compared to last year??s 53 percent."

As with last year??s study, consumers tell NPD they are in no hurry to start their shopping for back-to-school. Half the number of consumers this year (3 percent) compared to last year (6 percent) say they have purchased for back-to-school already.

"More and more consumers keep telling us that they are putting off their shopping later and later each year," said Cohen. "I would say that this is a change in the timing of consumption, more people 'buying now and wearing now,?? is part of the lingering impact of the recession."

While consumers?? plans indicate a later start to their shopping they still plan to buy and the category that tops most back-to-school shopping lists is school supplies with 74 percent of the study??s respondents saying they plan to purchase them. Two categories that appear to be getting this biggest lift this season are apparel (58 percent this year vs. 52 percent last year) and footwear (45 percent this year vs. 39 percent last year).

"This year it is all about freedom on a budget," said Cohen. "The kids are more likely to have the freedom to say which stores they will shop in, but their parents will still keep them on a budget."

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