The Economy Is Providing a Solid Base for an Excellent Back-to-School Shopping Season Although there are always elements of the US economy performing better than others, such as Q1 2018 retail sales increasing an average of 4.75% YOY and an average of 1.1% MOM, some are still somewhat tepid, such as new- home sales and wage growth. The economy added 164,000 jobs during April 2018, which was less than the expected 192,000, but the unemployment rate decreased to 3.9% while the annualized average hourly earnings of 2.6% was only slightly less than experts’ anticipated results. The Conference Board’s April 2018 Consumer Confidence Index® increased from March’s 127.0 to 128.7, the Present Situation Index from 158.1 to 159.6 and the Expectations Index from 106.2 to 108.1.

Spending Budgets and Behaviors According to TrendSource’s Back-to-School 2017 Consumer Insights Study, based on a survey conducted during late-June/early-July 2017, the largest percentage, or 27%, of respondents said their back-to-school spending budget was $250 or less. Of those surveyed, 67% said they were shopping for their children; 26%, shopping for themselves; 3%, a teacher shopping for his or her classroom; 2%, shopping for grandchildren/relatives; and 2%, shopping to donate school items. 89% of adults said they shopped with their children; 8%, gave their child/children an allowance and shopped with them; 2%, gave their child/children an allowance and shopped themselves; and 1%, their child/children shopped with their own money.

Buying Apparel The TrendSource report revealed 76% of survey respondents intended to purchase fashion and/or apparel merchandise, with an average maximum budget of $302.07. Although just 18% of survey adults said their children were required to wear a school uniform, their budget for that purchase was $179.18. 83% said they planned to purchase the majority of fashion/apparel merchandise in-store and 17% online. Most online purchases would be made via a desktop device, at 55%, followed by mobile, 28%, and tablet, 16%.

Buying School Supplies Not surprising, the largest percentage, or 92%, of survey respondents said they would be purchasing school supplies, with a maximum budget of $176.81. Half of respondents said they would only purchase school supplies with a discount while another 28% said a discount wasn’t necessary. Most of those school supplies would be purchased in-store, at 91%, and just 8% online. Word-of-mouth recommendations from family and friends, at 81%, would have the greatest influence on school supplies purchases, with print or mail ads second, at 80%; retailer email, 70%; online advertising, 68%; and TV, 63%.

Buying Electronics/Technology The smallest percentage, or 37%, of TrendSource survey respondents planned to purchase electronics/technology products, but this is understandable since they had the largest average maximum budget of $463.31. Interestingly, 43% of respondents said their children were required to have a laptop or tablet for school, but only 30% of schools provided the device while 70% of adults had to buy the device for their child or children. Once again, recommendations from family/friends had the greatest influence on their electronics/technology purchase, at 86%; followed by online reviews, 85%; online advertising, 80%; print or mail advertising, 79%; and retailer email, 77%.

Buying Extracurricular Merchandise Although 41% of survey respondents said they intended to purchase extracurricular items, 86% said they would spend 25% or less of their total back-to- school spending budget for them, with sports apparel and gear the largest category, at 76%. Specialty stores is where almost three-quarters (73%) of the respondents said they would shop for extracurricular merchandise; followed by big-box retailers, 55%; online, 39%; and directly from the school, 25%. 43% of respondents said they would review extracurricular items in a store and buy in the store; 9%, review items in store, but buy online; 33%, review items online, but buy in the store; and 14%, review online and buy online.

Advertising Strategies When advertising back-to-school products for college students, retailers must keep in mind that less than 50% are of traditional college age, or 21 and younger, while 19% are 22–24; 15%, 25–29; and 21%, 30+ – and many of these older students spend their own money. It is clear TV is a major advertising influence channel for the four categories of merchandise in the Profiler, but its use will be more effective when paired with other influence channels, such as email campaigns, direct mail and online ads. Retailers targeting parents shopping for younger students should emphasize convenience and discounts over brands while teenagers are more attracted to brands, so emphasize the store’s broad inventory of the hottest brands for their parents (and teens).

New Media Strategies As indicated in the Profiler, recommendations from family members/friends is the #1 influencer of all four categories of merchandise, so retailers must aggressively ask (or even reward) shoppers to post reviews, especially videos, on social media. Many teachers spend their own money to buy classroom supplies. Host an online “Honor a Teacher” contest, asking customers to post a short story about their favorite teacher. Everyone votes for their favorite story and the teacher receives a package of supplies. Retailers may be able to maximize foot traffic and sales by posting a “Household Back-to-School” bundle on their Websites and social media, as parents are more likely to buy pasta, toothbrush holders, vacuum bags and similar products, during the back-to-school season.