Education Freestyle

cited: Time Magazine

Remember back-to-school time when you were a kid? Back then, it seemed like only you and the ice cream man were dreading September. Now, shopkeepers and retailers all over the country are sporting frowns as well- as sales in back-to-school clothing, supplies, and gadgets decline for the second year in a row.

“In my 30 years of tracking this, we’ve never seen two straight year of declines,” says Britt Beemer, founder and chairman of America’s Research Group, “It’s pretty bad.”

The National Retail Federation predicts the average family with K-12 students will spend $548.72 on school merchandise, which represents a 7.7% decline from 2008.

Back to school is the second most important season for retailers, behind the December holidays. According to a survey conducted by Beemer, more than half of American parents are trying to get their children to recycle the clothing they wore last year, summer growth spurts not withstanding. More parents are also controlling the purse strings and moving down-market for pants and shoes. Nearly 45% more consumers say they will shop at Wal-Mart for back-to-school items this year, according to Beemer’s survey, and Sears picked up 33.3% more shoppers. “A lot of moms and dads are going to be buying back-to-school clothing in places their kids don’t want to go,” Beemer says. That’s just what America’s education system needs: more teens stewing about their cheap jeans during chemistry class.

For those looking for more fashion . . . You can still find the latest jean trends- like stretch jeans, skinny jeans, low rise women’s jeans- everything you need for the fall season, at a reasonable price. Don’t take the recession out on your closet!

Apparel isn’t the only thing that will take a hit. Back-to-school shoppers plan to buy less of the basic stuff that students really need. The National Retail Federation forecasts that spending on notebooks, folders, backpacks and lunch boxes will fall 16% this year. Analysts predict that electronic items like personal computers will also see a sales decline. “We expect that it’s going to be a disappointing season,” says Ashok Kumar, tech analyst at Collins Stewart, an advisory firm. Kumar points out that life cycles of desktop computers are stretching from four years to as much as six years; laptops used to last about three years; now consumers are getting an extra year out of them. “Parents are asking kids to make use of existing resources, just like companies,” Kumar says. Over the past four years, Beemer has asked consumers which type of electronics item they would be most likely to buy for their children for school. Computers were the most popular item every time. This year, the most popular item was calculators, which makes sense. They’re cheaper, and a tool for parents who want to teach their kids to be budget-conscious bean counters.

Of course, bad news for retailers is usually good news for consumers, and back-to-school shoppers should expect sweet deals designed to get them in stores. Retailers are still desperate to reverse their fortunes in a down economy. However, consumers shouldn’t be as giddy as they were, say, six months ago, when stores were running 70% clearance sales to shed their excess holiday inventory. Stores have wised up a bit and cut inventory levels to match the slack in demand. So while retailers may offer lean discounts, we’re beyond the slash-and-burn era. “Consumers are going to see moderately priced value offerings,” says George Whalin, president of Retail Management Consultants. “The really, really deep mark-downs aren’t going to happen this year.”

Some parents are pulling through the season in style. Take Jessica Montero for example; an administrative assistant from the South Bronx, her hours were cut earlier this year, and she’s been figuring out how to the deal with the reduction in her paycheck. With a son entering ninth grade, what could she do? The school requires uniforms, not to mention all the other necessities that come up with each new school year. So, she headed off to Target to hobble the uniform together herself, as opposed to going through the over-priced school vendor. Continuing on her thrift odyssey, she is buying all the school supplies from the discount store. Saving money on supplies may not make your kids like back-to-school anymore, but it will do wonders for your smile.

My Take

In times of need, we’ve all found ways to cut corners. This most recent recession has spawned some common sense cuts- like getting your Number 2’s at a discount store- and some altogether entertaining creations, like brokelyn.com.

At my dinner table, you’ll see a lot more soup in lean months. Also, a much leaner me.

While higher-priced retailers deserve our sympathy, it’s encouraging to see huge amounts of the population banding together to save some cash. I won’t really miss a few Cartier stores here and there, but I think I will miss the huge savings of earlier this year.

Related Resources

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