Facing sticker shock at the pumps, consumers are traveling no further
than their computers to log onto price comparison search engines for
back-to-school deals for their kids.
While b-t-s shopping budgets will be flat or shrink slightly as cautious
consumers maintain a recession mind-set, e-commerce is poised to
significantly gain market share, as it did last Christmas season when it
more than doubled its growth rate. “The Internet is already highly
promotional,” said Walter Loeb, founder of Loeb Associates. “That’s
where retailers are gaining share. Many retailers at the mall were empty
last Sunday. Success this b-t-s season will be selective and it won’t
be for all retailers. There’s no sense of free spending exuberance.
Department stores will get their share if they don’t have a sale every
Friday and Saturday,” as has been their custom during the b-t-s selling
period.
A
b-t-s forecast survey by PriceGrabber, a part of Experian, found that
69 percent of consumers plan to shop online and use comparison shopping
sites as a money-saving technique, compared with 23 percent in 2010.
Forty-one percent of shoppers said they’ll visit retailer Web sites this
b-t-s period to print out coupons, versus 33 percent last year.
“Clothing retailers will always benefit from the b-t-s shopping season,
and we suspect that the increase in purchases in this category can be
attributed to the recent wide availability of affordable,
designer-inspired clothes,” said Graham Jones, general manager of
PriceGrabber. “Parents looking to keep their kids on-trend may find it
easier to stay within their budget by comparing prices online for a
discounted pair of designer jeans and extending the life of the
expensive electronics they already own.”
PriceGrabber’s
survey found that 48 percent of consumers plan to spend $250 or more on
b-t-s purchases, and 25 percent will spend $500 or more, a modest
decrease from b-t-s budgets in 2010, when 56 percent of consumers said
they’d spend $250 or more and 31 percent planned to spend $500 or more.
The survey of 2,612 U.S. online consumers was conducted May 12 to 19.
The NPD Group’s study of consumers’ purchasing intentions for the b-t-s
season saw little change in the amount shoppers plan to spend. The same
number — 38 percent — said they planned to spend more this year than
last, and 22 percent said they would spend less in both periods. Once
again, value is their modus operandi.
“We
have a clear sign that ‘trendy and fashionable’ or ‘influenced by
friends’ is shrinking and ‘value’ is gaining momentum,” said Marshal
Cohen, NPD’s chief industry analyst. “The study’s results clearly point
out that consumers will be shopping later, looking for value, and
searching out lower priced options.”
That should benefit mass chains like Target, Kmart and Wal-Mart.
“Target.com continues to be a destination, especially at monumental
moments like b-t-s,” said a spokeswoman for the retailer. “There’s an
expanded assortment on Target.com, an option for students to make lists
and a back-to-college checklist where we’ve curated a list of products
students need as they head back to college. Even if they’re not shopping
online, our guests are doing some homework and preview shopping.”
A key launch for b-t-s is Denizen jeans from Levi’s, with styles for the
whole family. The brand, which is exclusive to Target, features jeans
in a variety of washes, dyes and fits. Skinny jeans for boys and girls
are $17.99. Shake it Up, the new collection from the Disney Channel’s
D-Signed brand, consists of fashion tops, leggings, screen prints and
jackets inspired by Ashley Tisdale’s Sharpay character from the “High
School Musical” series. Customization and personalization of items for
b-t-s includes Paul Frank stationary and notebooks, where kids can color
the iconic monkey to their liking.
“B-t-s
is the second biggest season” next to Christmas, in terms of sales,
said Mark Snyder, chief marketing officer at Kmart. “Our customer is
compressing the frequency of her trips and saying she’s being more
thoughtful and deliberate in what she’s choosing.”
Kmart is trying to leverage social networking in the b-t-s arena.
“Selena Gomez has 4 million followers on Facebook,” Snyder said,
referring to the actress, whose Dream Out Loud collection is sold
exclusively at Kmart. “With the celebrity deals you put together today,
you negotiate with them to tweet and do Twitter parties. In the old days
it was, ‘How many appearances can you make?’”
Kmart’s silver bullet, according to Snyder, is layaway. “In this post
credit-crazy world, it’s one of the things that will get the customer
into the store, along with great prices. We grew layaway in 2009 by 3
million families.Layaway is growing in influence every year,” he said.
However, Amy Noblin, a retail analyst at Weeden & Co., said
retailers are adopting a more conservative tone with regard to b-t-s.
“The economic data have been mixed. There’s a lot of uncertainty around
pricing,” she said, referring to how higher cotton prices will impact
consumer prices. “That’s the big wild card. Retailers are waiting to see
what [their competitors] are going to do with pricing. Certain
retailers have been able to deflect some increases to the spring. The
price increases will be bigger in the second half of the year. The more
cotton-exposed categories are up more.”
For example, Noblin said graphic T-shirts are up $2 to $5, hoodies up by
$10 and there are more high-priced denim stockkeeping units offered in
the category. “You’re going to see more promotions that help mask the
price increases,” she said.
Denim will be important, as always, with styles ranging from “the
skinniest leg through boot cut to straight leg to a slightly wider
flare,” said Tana Ward, senior vice president and chief merchandising
officer for American Eagle Outfitters Inc. “It’s not really about one
fit.”
American Eagle’s b-t-s offerings have more of a rocker influence with
the marketing message “We the People,” edgier graphics on T-shirts and
crop tops. Pre-planned promotions start as early as this week and will
continue throughout the season. Ward said American Eagle continues to
see more visitors online.
“To truly win b-t-s, J.C. Penney is reaching a new and younger customer
through unique digital experiences,” said a J.C. Penney Co. Inc.
spokeswoman. “We want to be part of their online social circle through
virtual tools that enable them to express their personal style while
getting involved in a worthy cause.”
That includes using mobile devices, QR codes, MS Tags and location based
check-in this b-t-s season. Penney’s is leveraging the popularity of
haul videos, which blend video blogging and a fashion show-and-tell,
with a Haul Nation contest on its Facebook page. Teens can upload their
haul videos for a chance to win a trip to New York City.
Stardoll, a new brand for b-t-s based on Stardoll.com, is bowing at
Penney’s. With more than 100 million users worldwide, Stardoll.com
claims to be “the world’s largest fashion and dress up games community
for girls.” Penney’s is capitalizing on the popularity of girls
designing and dressing personalized “MeDoll” avatars by using those
style trends to create Stardoll clothing and accessories, such as
five-pocket jeans, $23.99, and floral flounce tops, $17.99. The retailer
is also launching its largest-ever online cause marketing campaign to
benefit kids’ after-school programs, a spokeswoman said.
Sears is introducing a new juniors brand called American Star. Mix and
match related separates feature trendy looks with an “uptown bohemian”
feel, a spokeswoman said, adding, “It’s an inspirational collection for
us.” Superstretchy jeans and jeggings come in a range of washes and fits
this season and jeans have details such as “bling” on the back pockets.
“We do see a trend in increased shopping in September as many kids check
out what their friends are wearing, take note of those trends and
return to the stores or go online to purchase additional, key items,”
she said.