NPD: Consumers not rushing to BTS shop

PORT WASHINGTON, N.Y. New research from The NPD Group finds that consumers are not in a hurry to start their back-to-school shopping. This year there was a 5% drop in the number of consumers saying they either ‘haven’t started’ or ‘don’t plan to shop’ for back-to-school as of July.

“While this 5% drop is not a huge drop, it’s enough of a shift to show us that there is no real rush by consumers to shop, even with the deep discounts being offered early in the season,” said Marshal Cohen, chief industry analyst, The NPD Group.

The number of consumers who say they intend to spend less on back-to-school items increased to 44% from 35% last year. Conversely, the number who say they will spend more dropped from 31% to 23%.

“Last year we had an even bigger drop-off in spending intentions,” said Cohen. “So the good news is that the bigger drop off is behind us. And the ‘not so bad news’ is that back-to-school is in line with the current trend of consumers cutting back but not out.”

The survey also indicates that department stores will take the hardest hit with 20% of consumers saying they will shop there, a 4% decline from last year. Office supply stores are consumers’ top shopping destination, with 82% of consumers saying they will shop there, followed by mass merchants/discounters at 42%. Chain stores come in third, with 29%.

“Back-to-school will be a big indicator of the consumers’ psyche with regard to overall spending this year compared to last year. So far, we are seeing continued caution when it comes to spending. Consumers are clearly putting need over desire. They will be more highly influenced by value than by fashionable or trendy products,” concluded Cohen.