Jul 31, 2010

Stores ramp up back-to-school promotionsBy Joyce SmithKansasCity.com

The back-to-school retail bell has rung.

Consumers are out earlier, perhaps giving themselves time to get the best bargains. And retailers are ready, enticing them with specials, discounts, freebies, charity fundraisers and a few “must-have items” — even offering fashion advice.

But will it be enough?

“Sales will be equal to last year at best,” said Cheryl Holland Bridges, director of the Center for Retailing Studies at Mays Business School at Texas A&M University. “People have a different relationship with their money today. They are still conservative. They may buy only three tops instead of six.”

According to a survey by BIGresearch for the National Retail Federation, an average family will spend $606.40 this year on clothes, shoes, supplies and electronics, compared with the $548.72 they planned to spend in 2009, for a total of $21.35 billion.

But back-to-school isn’t all about children. Back-to-college sales are expected to reach $45.8 billion, more than double the younger counterparts’ total.

Still, cost-cutting consumers are more likely to buy store brands (good news for stores such as Macy’s and Dillard’s) and generic merchandise, and comparison-shop online.

Discounters such as Wal-Mart, Kohl’s and Target are expected to do well on children’s clothing, analysts said. Wal-Mart and Payless are among the top picks for shoes. More and more parents also are turning to thrift stores and consignment shops.

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