Parents will shop and spend more during the back-to-school season this year than they did last year, according to ShopperTrak. The company projects that national retail sales will rise 4.3% in August, and retail foot traffic will increase 0.6%, when compared to the year-ago period.
“Back-to-school shopping is the first major ‘shopping season’ of the calendar year, and has the potential to set the tone for the holidays,” said Bill Martin, ShopperTrak founder. “The economy is, in many ways, stronger than it was last August. We expect that the 2013 season will continue the growth trend of both retail sales and foot traffic.”
In 2012, back-to-school sales increased 5.9% compared to the previous year. In 2011, those sales increased 4.5% over 2010.
This year’s retail foot traffic increase continues the positive trend. In 2012, foot traffic turned around and increased a substantial 11%, compared to the back-to-school traffic in 2011. That year, foot traffic declined 5.1% from 2010.
SLOW, STEADY GAINS MEAN OPPORTUNITIES FOR RETAILERS
The expected increases in August reflect the U.S. economy’s slow but steady gains. For instance, unemployment this year is lower than it was during last year’s back-to-school time. Though consumer sentiment does not impact retail sales immediately, the University of Michigan Consumer Sentiment Index recently reached its highest level since the beginning of the recession. The last time consumer sentiment was as high as it was in May 2013 was in September 2007.
In recent years, back-to-school shoppers had focused on stores with the best values. But with this positive consumer sentiment, shoppers may be more willing to “shop around” at more stores – not just the value locations – thus adding to the increased foot traffic and sales.
“On the whole, more people feel better about their financial situation than they did last year in August,” said Martin. “Parents are ready to spend on their children’s school necessities. The consumers will be browsing. In order to seize this opportunity, smart retailers must prepare their marketing and operations to increase their foot traffic, sales and ultimately, their shopper conversion rates."[Source: "ShopperTrak National Retail Sales Estimate." ShopperTrak. 9 Jul. 2013. Web. 10 Jul. 2013.]