Ring In School Sales

Eager to put school behind them, kids all over the country are streaming out of classrooms with summer vacation looming bright. Surely, they won't want to think about back to school any time soon, but now is the time for retailers to start planning and merchandising for it.

“It's such a short selling season,” notes Erin Alsup of Design Ideas, Springfield, Illinois, “When I was in retail, we'd start displaying and promoting back-to-school merchandise in July. Parents and kids don't really want to think about it at that point, but we had to get them to start thinking of us and what we had.”

Surprisingly, according to a survey conducted for the National Retail Federation (NRF), retail sales for back-to-school/campus merchandise — some $40.5 billion in 2004 — are second only to the holiday season. And better than 65 percent of those sales are made in the final two to three weeks before school starts. That amounts to a lot of money going in the till in a short time period.

While it's true that a good portion of these sales are in merchandise categories that are not part of the specialty retailer's merchandise mix, there's still plenty of room to tap into this market: of consumers surveyed, better than 20 percent planned to shop specialty retailers and home furnishings/home decor stores for their school needs.

These days, back-to-school sales are much more than just pencils, paper, and new shoes. By recognizing and capitalizing on this fact, retailers have contributed to the growth in BTS sales, an historically neglected market. “When retailers can satisfy the needs of new — and potentially lifelong — consumers by offering fun, exciting, in-demand merchandise, everybody wins,” observes NRF chief executive Tracy Mullin.

For families with kids in the K–12 bracket, 2004 back-to-school spending amounted to about $14.79 billion, with the average amount per child about $428.28. This figure is better than a 7 percent increase over 2003, according to the NRF survey. In addition to the money spent by parents, teens and pre-teens opened their own wallets to the tune of about $884 million during the back to school buying season — averages of about $85 and $40, respectively.

Retailers underestimate the spending power of today's kids at their own peril. Not only do kids have their own money, but they take an active part in influencing the spending decisions of their parents. Exposed to media and marketing early on, they're style- and trend-conscious at a much earlier age than previous generations. Teens and pre-teens are already in the process of establishing identities, and have definite opinions about their likes and dislikes, heavily influenced by what's cool and what's not. They want to blend in with the crowd, but they also want to be different. They'll turn to specialty retailers for merchandise that will make them stand out, and help identify who they are through what they wear, carry, and use.

Spending by and for the college-bound student represents the biggest portion of back-to-school sales, totaling some $25.7 billion — nearly twice the amount spent on primary and secondary school students. Of the back-to-campus crowd, freshmen and juniors spend the most — the freshmen because they're moving away from home for the first time, and juniors because many are moving off-campus and need to furnish their apartments.

According to the NRF survey, the college freshman spends approximately $1,200 on school-related products, with nearly $760 of that spent on computers, electronics, and related accessories. Of the approximately $800 that college juniors spend, nearly one-third will be for dorm or apartment furnishings and decor. And what they buy at this important juncture in their lives may even become the core of their future home furnishings plan.

Back-to-school shopping is no longer a simple matter of purchasing a new outfit, a few novelty pencil toppers, a filled pencil box, or a metal lunchbox with the latest Saturday morning hero on the lid. Times have changed, and kids' school needs have too.

Electronics, including computers and other related accessories, is one of the fastest growing categories for back-to-school spending, representing a 15 percent increase in 2004, according to the NRF. Today, kids are tuned in to CD and MP3 players, and communicate via Sidekicks, Blackberrys, and cell phones; they do their research, homework, and game-playing on the computer.

Although specialty gift retailers are not likely to capture these electronics sales, they can set their cash registers ringing with special accessories for personal electronic devices. Fun wrist rests and mouse pads add a little whimsy to desk decor, and also prevent discomfort and impairment during long sessions at the computer. Brightly colored CD storage albums control the clutter of individual cases, protect data and music, and complement decor. Special cases for portable media such as cell phones and MP3 players, some even with arm straps for use while working out make fashionable accessories.

“Most kids want to be noticed and identified as being different,” observes Monty Ship of Sasi International, Toronto, Canada. “Many identify themselves through their cell phones and personal devices; something cool to accessorize them is natural.” To that end, these accessories have an appeal beyond the school crowd.

Unique backpacks and book/computer bags are also a good bet for the specialty retailer, appealing to the kids' desire to get noticed. And for all the use and abuse they take in the course of the school year, this is one item that needs regular replacement, no matter how sturdy. For greatest impact, gift retailers should look for items that are part of a line, such as collections that include lunch bags, notebooks, pencil cases, etc. Merchandising the collection together encourages the purchase of multiple items, and also offers a way to sell notebooks and journals apart from office products.

Smaller storage and organizational accessories are also great for helping to keep kids on track — and the more decorative, the better. Magnetic organizers keep belongings from ending up in a pile at the bottom of a locker, while adding personality to the student's home away from home. While brightly colored sturdy plastic pieces will appeal to the girls, industrial metal styles are perfect for the guys. Calendars and personal organizers help keep schedules straight, and decorative desk cradles hold PDAs or cell phones, giving such easily misplaced devices a home in any home.

Round out your selection with additional study aids such as reading lights, lap desks, and books and games that teach along with play for a solid mix of merchandise for the BTS customer.

The key thing for retailers to keep in mind is that BTS merchandise has to make a big splash. It is a short selling season, so plant the seeds of thought early to get customers thinking about your store as their destination for special accessories to fill out their back-to-school needs.