PORT WASHINGTON, NEW YORK, August 14, 2008 – The NPD Group, Inc., a leading market research company, released the results of its annual Back-to-School 2008 survey of consumers’ purchasing intentions. Consumers tell NPD they plan to cut back their spending across almost all categories.
| Back To School Spending Intentions | 2008 | 2007 |
| Plan to Spend Less? | 35% | 25% |
| Plan to Spend the Same? | 34% | 39% |
| Plan to Spend More? | 31% | 36% |
While consumers are displaying signs of cutting back there is very little sign that they will be changing where they plan to shop. “The most vulnerable channels of distribution are the apparel and footwear stores.” said Cohen, “Even the discounters will have to work hard to lure customers in to shop. These retailers should expect to see more and more competition from ‘non-traditional’ rivals like office supply stores.”
| Where Are You Likely To Shop For Back-To-School? | 2008 | 2007 |
| Discounters | 81% | 84% |
| Office Supply | 45% | 43% |
| Dept. Stores | 25% | 26% |
| Footwear | 22% | 27% |
| Internet | 18% | 18% |
| Electronic | 16% | 16% |
| Apparel | 16% | 20% |
| Warehouse Club | 12% | 11% |
| National Chains | 12% | 14% |
| Grocery Stores | 12% | 14% |
| Drug | 12% | 12% |
| Factory Outlet | 6% | 7% |
| Catalog/Direct Mail | 5% | 5% |
| Sporting Goods | 4% | 5% |
| Photo Supply | 1% | 1% |
There is no change in consumers’ intentions when it comes to shopping for electronics. “Electronics are no longer seen as luxury items but as ‘must–have’ items for your student,” noted Cohen
When consumers were asked which items they either have purchased or plan to purchase for this year’s back-to-school season, School Supplies took the number one spot again. In the year over year results, here again, there are signs that consumers intend to cut back and in almost every category.
| Category Spending (in Dollar Order) | 2008 | 2007 |
| School Supplies | 78% | 83% |
| Apparel | 60% | 66% |
| Footwear | 48% | 55% |
| Electronics | 34% | 38% |
| School Bags | 33% | 45% |
| Accessories | 20% | 25% |
| Beauty Products | 17% | 20% |
| Personal Computers | 13% | 13% |
| Bedding | 13% | 13% |
| Furniture | 9% | 10% |
| Small Appliances | 7% | 7% |
| Cell Phones | 7% | 8% |
| Movies/DVDs | 7% | 8% |
| Printers | 6% | 7% |
| Digital Cameras | 5% | 6% |
| Large Appliances | 4% | 4% |
| Music | 4% | 6% |
| Sports Equipment | 4% | 5% |
| Calculators | 4% | 14% |
| MP3's | 3% | 4% |
| Video Games | 3% | 3% |
Cohen, analyzing these results, noted, “School bags are the most vulnerable of the big spending categories for back-to-school; parents seem to think they will be reusing the bag from last year. This is a purchase that parents feel can wait until it’s completely worn out, rather than having to get new one just for the sake of having a new one.”
What about the traditional back-to-school wardrobe purchases? “The footwear industry has a way to go to convince parents they need to spend for back-to-school and apparel is right behind with 24% less consumers expected to spend on footwear this year compared to last and apparel showing 10% less spending expected.” said Cohen.
Additionally, consumers were asked what motivates their Back-To-School purchases. The number one reason for an item to be bought is “Value” followed by the item was “Required.”
| Why will you purchase? | 2008 | 2007 |
| Value | 80% | 81% |
| Required | 51% | 56% |
| Replacement | 30% | 30% |
| Child Wanted It | 21% | 26% |
| Trendy/Fashionable | 18% | 22% |
| Influenced By Friends | 4% | 4% |
"As the back-to-school season progresses I think we will see that while parent’s early intentions are to cut back in the end they won’t cut back on their kids all that much.” said Cohen.
About The NPD Group, Inc.
The NPD Group is the leading provider of reliable and comprehensive consumer and retail information for a wide range of industries. Today, more than 1,600 manufacturers, retailers, and service companies rely on NPD to help them drive critical business decisions at the global, national, and local market levels. NPD helps our clients to identify new business opportunities and guide product development, marketing, sales, merchandising, and other functions. Information is available for the following industry sectors: automotive, beauty, commercial technology, consumer technology, entertainment, fashion, food and beverage, foodservice, home, office supplies, software, sports, toys, and wireless. For more information, contact us or visit http://www.npd.com.