NRF: Stimulus checks saved for school supplies
July 22, 2008
Washington, D.C.—One-fifth of parents nationwide with school-aged children have set aside a portion of their economic-stimulus check for back-to-school purchases this year, according to the latest survey from the
National Retail Federation (NRF).
The 2008 Back to School Consumer Intentions and Actions Survey, conducted for the NRF by Big Research, also found that the average family with school-aged children will spend $594.24 on back-to-school purchases this year, compared with $563.49 last year.
Total back-to-school spending for kindergarten through 12th grade this year is estimated to reach $20.1 billion.
While spending in most categories will remain flat over last year, electronics spending will continue to rise as many parents plan to spend about $151.61 of their tax rebate check on household electronics such as computers and cell phones this year, up from $129.24 last year.
Spending on clothing ($234.51 vs. $231.80 last year), shoes ($109.75 vs. $108.42) and school supplies ($98.47 vs. $94.02) will see more moderate increases.
Back-to-college spending, which has helped buoy retail sales for the past five years, will drop seven percent this year, from an average of $641.56 per person last year to $599.38 this year, according to the NRF's 2008 Back to College Consumer Intentions and Actions Survey.
With total back-to-college spending expected to reach $31.26 billion, 2008 back-to-college and back-to-school spending combined will total $51.4 billion.
"College students are learning a hard lesson that when economic times are tough, fun purchases take a back seat," NRF President and CEO Tracy Mullin said in a media release issued today. "While students will still be buying school supplies, they will scale back spending on clothing, electronics and dorm furnishings."
While college students will still allocate the largest portion of their budget to electronics, spending will fall to $211.89 per person this year from $258.43 last year.
Spending on clothing ($134.40 vs. $149.85 last year) and dorm furnishings ($90.90 vs. $109.85) will also drop, while spending on shoes will remain flat ($58.46 vs. $59.90).
Only one category—school supplies—will experience a notable increase, from $63.52 last year to $68.47 this year.
Spending on collegiate gear, a new category, will average $35.26 per person.
"Though every college student wants the latest-and-greatest gadgets, students are being frugal this year," Big Research Vice President of Strategy Phil Rist said in the release. "While some may opt for a cheaper model, many students may take advantage of computer labs at school or a family computer at home instead of investing in one themselves."
The NRF 2008 Back to School and Back to College Consumer Intentions and Actions Surveys were designed to gauge consumer behavior and shopping trends related to back-to-school spending and back-to-college spending. The poll of 8,361 consumers was conducted from July 1-8, 2008, and has a margin of error of plus or minus 1 percent.
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