With the National Retail Federation estimating that families will spend $669.28 on clothes, shoes, supplies and electronics, more retailers are clamoring for a share of those sales.
CLEVELAND, Ohio -- The calendar may still say mid-July, but retailers are already weeks into the lucrative back-to-school season, the industry's second-largest after the winter holidays. From price-match guarantees to opportunities to share school supplies with needy children, stores are multiplying their promotions in hopes of scoring extra sales during the $74.9 billion shopping season.
With the National Retail Federation estimating that the average family will spend $669.28 on clothes, shoes, supplies and electronics, more retailers are clamoring for a share of those sales. That's up 5 percent from last year's $634.78, but still shy of 2012's high of $688.62.
View full sizeBeats by Dr. Dre headphones For students heading to college, that average balloons to $916.48 per family, up 10 percent from $836.83 last year, for things like dorm furniture, bedding, school supplies, electronics and other comforts.
"Throughout the history of this survey, spending has fluctuated based on family needs each year, and this summer, we expect parents to continue to use caution, but also make smart decisions for their family budget that is a good balance between what their children 'want' and what they actually need," NRF President and Chief Executive Matthew Shay said in a written statement.
The International Council of Shopping Centers said 37 percent of families have already started shopping for back-to-school, up from 29 percent this time last year.
And 90 percent of those who have started are hitting brick-and-mortar stores over online (8.1 percent) and catalog retailers (3 percent). Moreover, in a trend the ICSC calls "webrooming," 73 percent of shoppers researched items online before buying them in the store.
"After a tough winter with adverse weather in much of the country, retailers have been enjoying a strong start to summer as pent-up demand has propelled sales," said ICSC spokesman Jesse Tron, in a statement. "This momentum will continue into the BTS (back-to-school) selling season as well."
"While consumers typically view BTS merchandise as an essential expenditure, we are seeing a strong indication that consumers will be spending on more discretionary purchases as well -- a good omen for retail as we progress through BTS season and into the holidays," he said.
The biggest share of the cost is clothes, an average of $231.30 per family, and $124.46 on shoes, both up from last year, according to the retail federation.
Electronics comes pretty close, with spending up 7 percent to $212.35, or $229.88 for families of high schoolers. For college-bound students, parents are spending an average of $243.79 on electronics. Besides laptops and calculators, some retailers are including X-Box systems, LED televisions and iPhones on their lists of items for students headed to college.
As more and more schools ask parents to chip in for classroom supplies, parents are spending 12 percent more on school supplies, $101.18 versus $90.49 last year.
Perhaps that's why 34 percent of parents say they will buy store brand and generic items; 25.6 percent said they will reuse last year's purchases; and 19.6 percent said they will buy online more often to save money.
This year's back-to-school promotions include:
Office Depot and OfficeMax, the nation's No. 2 and No. 3 office supply retailers before they merged in February 2013, are touting more than 1,000 items for $5 or less both in-store and online. This week, they are selling glue bottles, two-hole pencil sharpeners, erasers and poly-snap envelopes for a quarter each.
Their back-to-school offerings include includes miniature chandeliers and carpets to personalize your locker, to NCredible backpacks designed by Nick Cannon, to high-end consumer electronics such as Beats by Dr. Dre headphones in red, black or white.
They are also matching competitors' prices year-round, not just for back-to-school, and offering a 90-day return policy. As in previous years, the two retailers will be holding special Teacher Appreciation Days sales in July and August, with additional Office Depot Rewards or MaxPerks Rewards points.
Not to be outdone, Staples Inc. is offering parents a 110-percent price-match guarantee both in-store and online at Staples.com. Customers who find the same item at a lower price can get it at the competitor's price, in addition to an extra 10 percent off, by showing the rival advertised price at the Customer Service Desk. For online price matching, call 1-800-333-3330.
Walmart Stores says it is lowering its prices by 10 percent and beefing up its selection of school supplies by 30 percent, to 75,000 items, according to Bloomberg News. The world's largest retailer is also giving teachers 10 percent off their out-of-pocket costs for the classroom.
Jo-Ann Stores, the Hudson-based fabrics and crafts retailer, is offering 30 percent off all Crayola brand items this week, as well as additional discounts just for teachers.
To appeal to time-strapped parents who don't want to shop at a dozen different stores, Costco Wholesale Corp. is selling French Toast brand school uniforms, and OfficeMax is selling some of its school supplies directly inside Kohl's stores, to capitalize on parents buying new outfits for school.
New for back to school this year: Giving back to others
Cleveland-area Dollar Tree and Deals stores are collecting donations of school supplies for children of military families through Aug. 14 at locations in Kamm's Plaza, Denison Plaza and Steelyard Commons. Customers can buy items in the stores and leave them in the collection bins after they check out. Last year's Back-to-School Brigade collected more than $4.7 million worth of supplies.
"These donated school supplies enhance the morale and the success of our military children, while easing the burden military families carry," said Darcy Clardy, executive director of Operation Homefront Central Great Lakes, in a statement. "These families deal with deployments and the other stresses of military life, and Operation Homefront serves lower- and mid-grade enlisted, the lowest paid of our service members."
OfficeMax and Office Depot are offering shoppers the option of designating 5 percent of their purchases towards their favorite school, while Staples is donating $1 million to fund teacher projects through DonorsChoose.org.
"Staples' customers are invited to #MakeRoarHappen and help their local teachers by donating $1 to DonorsChoose.org at their local Staples store or online at www.staples.com/makeroarhappen," the company said in a news release. "Donations will be used to fund classroom projects in the community where the donation was made."
View full sizeTarget's Up & Up mechanical pencils And Target will match purchases of select "Up & Up" brand school supplies with a donation of up to $25 million worth of school supplies to the Kids in Need Foundation, which gives free school supplies to needy students.
The promotion applies to items purchased through Aug. 2, and the fine print notes that "Actual items donated may be based on classroom need, may differ from items listed/pictured, and may be of equal or lesser value than items purchased."
Shay of the Retail Federation said retailers are using Instagram and other social media to attract families of college students, "as well as content that speaks to these tech-savvy, fashion-forward students."
Target is offering an online checklist of dorm items, dubbed as "Pretty much everything you'll ever need for those 228 square feet of yours." Target also has a college registry at Target.com/collegeregistry that lets students ask friends and relatives to chip in toward the cost of their must-haves, such as Room Essential Twin XL-sized mattress pads, the Quirky Cargo Shower Caddy, and Joy Mangano's 34-piece Huggable Hangar Combo Pack.
Students can also shop instantly from its back-to-college catalog using its free "In a Snap" app, which lets them scan and buy items on the spot. And for the first time, students can subscribe to have everyday essentials delivered on a recurring basis, with free shipping. That includes food, but not perishables like frozen pizza, a spokeswoman said.