Frugal spending expected for BTS

NEW YORK A new survey from Deloitte reveals that while fewer consumers expect to reduce their spending on back-to-school items compared to last year, economic concerns still weigh heavily on shoppers.

Among those surveyed, 64% said they plan to spend less on back-to-school items, compared with 71% in 2008. Four in 10 (43%) say they will cut back their spending by more than $100, down from nearly five out of 10 (48%) last year.

"Consumers may be casting a glimmer of hope for retailers, but the survey results indicate that value will top their shopping lists this year," said Stacy Janiak, vice chairman and U.S. retail leader for Deloitte. "Although retailers may not see as many wallets snapping shut as they did in late 2008, consumers still plan to stretch their dollars, telling us that that their shopping remains constrained. Retailers should focus on delivering the best incentives and in-store experiences to get the most out of the back-to-school season this year."

General concerns about the economy (55%) topped the reasons that consumers expect to spend less, followed by high prices for gas (50 percent), food (50 percent), and home energy (46%). However, these three inflation-related percentages are down significantly from 2008, when consumers largely attributed their reduced spending to these items.

Discount department stores should see the majority of back-to-school shoppers, as 90% of those surveyed said they'd do their shopping there. Among other places they will shop, 40% said dollar stores, 29% said office supply stores and 28% said off-price stores.

Shoppers will be looking for the best deals. Almost one-third (32%) said they would buy more private label brands, and more than one-quarter (28%) will comparison shop online before buying.

When asked if they are likely to cut back on specific items, more than eight out of 10 (81%) said they plan to pare back on clothes and almost half (49%) expect to spend less on shoes. Almost one-third (32%) anticipate less going toward supplies and nearly the same amount (30%) intend to spend less on backpacks/book bags.