Apparel Demand Up, Yet Spending Is Flat for Back-to-School

Shopping for apparel should be on the consumer’s mind during the upcoming Backto- School season, according to a survey released July 24 by the market research firm NPD Group Inc.

Its survey found that 71 percent of shoppers plan to purchase clothes during the season, compared with 66 percent last year. The company questioned more than 34,000 consumers. However, the forecast for the rest of the season might be cloudy, according to the Port Washington, N.Y.–based market research firm.

Spending will be flat. The survey found that 43 percent say they’ll spend about the same amount they budgeted for Back-to- School in the previous year. Forty-seven percent of consumers expect to spend less than $250 per child this year, while 28 percent plan to budget between $251 and $500 for Back-to- School. Seven percent anticipate spending more than $1,000.

Consumers also plan to make their shopping trips later in the season. The survey found that 56 percent of them plan to do their shopping between Aug. 1 and Sept. 1, compared with the 44 percent who said they would do their shopping early, from July 1 to July 31.

One retail sector should find something to cheer about during the upcoming Back-to- School season, according to the survey. It’s the long-suffering traditional department store. Researchers found that 27 percent of the people they surveyed intended to shop at a traditional department store. That’s up from 24 percent in the 2005 Back-to-School survey.

Retail consultant Lynne Sperling said the improved forecast was the result of the department store sector taking steps to make itself more attractive to consumers.

“A few years ago, everybody had the same resources. The stores looked the same. Now, they have started to differentiate themselves,” said Sperling, owner/partner with retail consultants Sperling Hileman, based in San Marino, Calif.

However, not everyone is bullish on department stores. Retail consultant George Whalin says the increase in people claiming to shop at department stores is inconsequential. “I haven’t seen meaningful change in department store environments. By the end of this year, we will see again that they have lost market share,” said Whalin, president of Retail Management Consultants in San Marcos, Calif.

The overwhelming number of survey respondents, 81 percent, said they would shop at mass-market retailers such as Target and Wal-Mart for Back-to-School.

Popular fashions for the Back-to-School crowd are forecast to be skinny, drainpipestyle jeans, white shirtdresses, Henley shirts and sweaters, said Barbara Fields, president of the Barbara Fields Buying Office. “Dresses are hot. Bermudas are hot,” she said. “Anything striped seems to be selling well.” —Andrew Asch