Back to school -- economics school: Strain on household budgets will cut into apparel, dorm spending

[marmar]

from MarketWatch:



Back to school -- economics school
Strain on household budgets will cut into apparel, dorm spending this year
By Jennifer Waters, MarketWatch


CHICAGO (MarketWatch) -- The sharp paring of consumer spending is already cutting into its next victim: back-to-school sales.

Consumers beaten down by prices at grocery stores and gas stations are taking their newfound money-saving ways to the shopping centers and school-supplies stores in what promises to be one of the most challenging back-to-school seasons in many years.

"This year's back-to-school season, without question, is continued belt-tightening as the consumer tries to stretch the dollar as far as possible," said Thom Blischok, president of IRI Consulting and Innovating.

A series of surveys asking consumers about their spending intentions for the back-to-school season -- second only behind Christmas in terms of consumer spending -- underscores that projection.

America's Research Group sees back-to-school spending falling as much as 2%. A mere 1.5% of consumers said they will buy products at full price. Last year, 11% said they would.

* The National Retail Federation said spending in most categories will be flat, with the exception of electronics. College students will learn a hard lesson in tough economic times as even their spending on electronic must-haves and gadgets will fall some 22% though it will remain their No. 1 buy.

* The International Council of Shopping Centers found that 90% of households said they will pick up everything from T-shirts to T-squares at discount stores. That's up 16 percentage points over last year and 34 percentage points over 2006.

* Deloitte found that 90% of households say they will change their back-to-school shopping habits to include more sale items, to purchase only what's needed, to shop for more lower-priced goods and to use more coupons, among other things. Nearly nine in 10 people said they will shop at discount and bargain stores. ........(more)

The complete piece is at: http://www.marketwatch.com/news/story/strain-household-budgets-crimp-back-to-school/story.aspx?guid=%7B2DC0A419%2DD1E2%2D4D6F%2DADB9%2D2DFCB66AD825%7D

[elleng]

1. And maybe it will cause sanity to return

(college=wise, anyway) to list of I NEEDs!

[glowing]

2. I bought at the beginning of summer when the prices were all on sale..

I didn't want to get caught paying full price "discounts" at the time for heading back to school. So, those newer clothes are sitting aside awaiting the school start.

[TheFarseer]

3. here's a question you have to answer:

do they care or are they already planning on marketing to China and India?

[bluestateguy]

4. I think it depends on the college

At schools with a lot of rich kids, I don't think you'll see much change.

Rest assured that all of the sorority girls from Ole Miss, USC and SMU will be ready with their (parents) credit cards.