This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Retailers Brace for Lower Back-to-School Sales

NEW YORK ( TheStreet) - Retailers banking on back-to-school sales to jump-start revenue heading into the fall may be in for an unpleasant surprised.

According to an annual survey by the National Retail Federation and Prosper Insights & Analytics, back-to-school sales this year are expected to fall compared to last year. After strong spending in 2012, families with school-age children are expected to spend an average of $634.78 on apparel, shoes, supplies and electronics, 8% less than they spent in 2012, the survey forecasts.

Total spending on back-to-school is expected to reach $26.7 billion. Total back-to-school and back-to-college spending combined will reach $72.5 billion, the survey says.

"The good news is that consumers are spending, but they are doing so with cost and practicality in mind. Having splurged on their growing children's needs last year, parents will ask their kids to reuse what they can for the upcoming school season," NRF President and CEO Matthew Shay said in a statement. "As they continue to grapple with the impact of increased payroll taxes, Americans will look to cut corners where they can, but will buy what their kids need. It's important to note, however, that spending levels are still well above where they were a few years ago."

On a positive note, consumers are already out shopping for school items. The survey found that 24% of respondents said they will begin shopping at least two months before school begins - the highest percentage seen in the survey's 11-year history.

"We continue to see a shift in shopping patterns during big spending 'events', where consumers typically head out early to take advantage of fresh inventory options and initial markdowns, then see a lull only to rev back up again when final sales appear," said Prosper Consumer Insights Director Pam Goodfellow. "Hoping to spread out their budgets, but still reap the benefits of getting the products their children want, parents this back-to-school season will comparison shop online and around town at their child's favorite stores, potentially even more than once, as they seek to find bargains and products that offer the best value."
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
BBBY $54.14 2.40%
JCP $8.31 2.50%
M $39.64 -0.99%
TGT $72.90 0.86%
TJX $70.53 -0.08%


Chart of I:DJI
DOW 17,812.19 +19.51 0.11%
S&P 500 2,089.14 +2.55 0.12%
NASDAQ 5,102.8080 +0.33 0.01%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs