Back-to-School is second to holidays in spending, according to working parents. And kick off begins right after July 4th

We talked about that funny Staples ad in our last post. The ad made an analogy on behalf of parents that back-to-school was akin to Christmas as Andy Williams croons "It's the most wonderful time of the year." Interestingly, there are a few other things the back-to-school shopping season has in common with the holiday season: Increased spending and changes in typical shopping patterns.

Our working parents told us that back-to-school is the second most expensive shopping trip of the year next to the holidays. Between new backpacks, clothes, lunchboxes, shoes and replenishing basics like underwear and socks, parents said they have an exhaustive array of items on their shopping list. However, parents aren't just buying for their kids. Our working parents told us that due to slashed teacher budgets, they put items like hand sanitizer, tissue and dry erase markers on the shopping list too.

And the kick off to the back-to-school season begins just as the celebration of our country ends.

Why so early? Parents told us that retailers start advertising their back-to-school sales "All of a sudden Target and Staples and all those start making [back-to-school] the top of their flyer" said one working mom. Parents also said that they do more browsing in the beginning of the season, and will only purchase when the deal is too good to pass up.

Back to school changes normal shopping behavior
Our parents said they peruse store fliers and circulars just as they do during the holidays, but weekly shopping behaviors are expanded while heavier price comparisons begin. They'll visit stores outside of their normal routine, too. "It's when I start comparing and that's when I might actually make the trip to Meijer or Big Lots or somewhere that I don't normally frequent" said a mother of two. This year, we think that lower gas prices will increase the likelihood of parents shopping outside of their normal footprint too.

Fill 'er up, and let the shopping begin!

photo credit: Flickr/emilyonasunday

Frighteningly Empty Stores for Halloween, or a Bewitching Economic Rebound?

About 148 million Americans are expected to partake in some sort of Halloween celebration, and according to National Retail Federation's Halloween Consumer Intentions and Actions Survey, people will be spending considerably more than they did last year, perhaps even back up to the levels of 2008. That being said, 30% of consumers say that the condition of the U.S. economy will still influence their Halloween plans. Total spending for the holiday is expected to reach $5.8 billion.
For some people Halloween is not an "all-out" spending holiday, with people doing the same thing from year-to-year regardless of the economy, certain spending boundaries remaining of course. Costumes appear to be where the most money is spent, and is not necessarily affected by economic circumstances while  decorations don't really come in to play regarding the economy. The state of the economy seems mainly to affect those throwing a party, forcing people to pull back on certain provisions.


Costumes - clearly the crux of the holiday
Consumers are expected to spend $23.37 per person on costumes this year
Spending on costumes might be the least economically affected aspect of Halloween this year, which seems to demonstrate that costumes are the nucleus of the holiday. While parents probably don't want to spend a ton of money on a costume their child will most likely wear only for one night, parents might pay anywhere from $10 at Sam's Club to $50 or $60 at Target or a Halloween pop-up store.

Married couples without children might spend $40 or $50 on an outfit, but they may recycle one or two pieces for an outfit the following year. Younger folks just out of college will head to thrift stores such as Goodwill or even look for accent items in their closet. Overall, costumes seem to dominate people's wallets with minor thought to economic conditions.

In fact, of those from NRF's survey:

• 40.1% of consumers are planning to wear a costume, up from 33.4% last year
• 69.4% of 18-24 year olds say they will dress up, the highest of any other age group

Decorations - reuse and recycle
Consumers are expected to spend $18.66 on decorations this year and 50.1% of consumers will decorate their home or yard
Halloween decorations seem to be something people don't buy every year, unlike Christmas where maybe new ornaments or bulbs are purchased yearly for a tree; therefore decorations don't appear to be a factor when people consider what or if they are going to cut back on in terms of spending for Halloween.

Some might bargain shop for decorations or pick up one or two new inexpensive items if they happen to see it in a store (like Target or Big Lots), while others might use what they have accumulated over the years. Some people agree that decorations can get expensive and money is better spent on costumes or parties.


Halloween Parties - I wanna party like it's 2008
Halloween parties might be the most affected aspect, in terms of spending, regarding the state of the economy. Perhaps those who went big the previous year, particularly purchasing alcohol, might scale back and instead have a BYOB party. Economic conditions may not completely stall someone from throwing a party, but it might be a more prominent factor from year-to-year.

NRF's survey revealed:

• 33.3% of people will attend or throw a party
• 55.4% of young adults are more likely than any other age group to throw or attend a party

Still Cutting Back
Although some say their Halloween spending will not change, or perhaps they will cut back on one or two aspects, 86.8% of those surveyed said they will spend less overall.

In addition...

• 45.1% will be buying less candy
• 30.7% will be using last year's decorations and not buying new ones
• 18.5% will be using last year's costume
• 19.5% will be making a costume

While some of those in NRF's survey say they will be loosening their wallets, there are still those who will continue to watch their spending. Perhaps this holiday season will be filled with cautious optimism where some party-goers and throwers will pinch their pennies where they can.

Image: Simon Howden/freedigitalphotos.net

Sources:
After Spooky 2009, Halloween Spending Bounces Back to '08 Levels, According to NRF, nrf.com, 9/23/10