Lindsay Rider: Consumer Insight

 

Back-to-school, the retail season only second in importance to holiday, came in like a lion, starting earlier and more aggressive than ever. According to the National Retail Federation, retailers have come out swinging with heavy promotions and deep discounts to entice consumers to come back i

nto the stores. And early on, it seemed to be working. In a July CBS News broadcast, it was repor

ted that families are spending $60 more getting ready for school than they did last year. But with two weeks left to go sales are not climbing. I took to the streets of Atlanta to

determine if shoppers are really boosting back-to-school sales.  

 

My Mission: Determine where parents were choosing to shop and how they were spending their money. And then, find out if the kids heading back to school were happy

 

My Game Plan: Visit my local Target and Wal-Mart stores as well as an area mall to interview parents and their children.

 

My Findings: My first stop, Target. I met a mother, Tina and her two daughters, Kendra and Maya with a massive shopping cart. Tina said, “Besides Christmas this is our main shopping trip for the girls, so we are loading up.” Her shopping strategy—she went online and visited the websites of her daughter’s favorite stores to determine where the cheapest buys would be, “we are at Target for clothes, but heading to Wal-Mart for all the supplies because they had better deals.” Tina went on to say that she has been working hard to save money here and there all year, “it’s become a new way of life for us, the extra time online planning out our day wasn’t a big deal. The girls are still going to get what they need, but I’m being smart about it.” The daughter’s consensus, “Do you want to see our Hello Kitty skirts now?” I’ll take that as yes, the girls were pretty happy with Tina’s strategy.

 

Next up, Wal-Mart, where I met a couple buying for three tween boys, (ages 7, 9, 12). Parents, Jack and Michelle, explained that they usually only shop during the tax-free week but Atlanta did away with the annual holiday this year (due to three bills stalled in the legislative session) so, they were only focusing on the basics. Jack explained, “Michelle took them to get a few things—clothes and shoes, but we didn’t bring them today because we are only buying standard supplies. It’s hard when I know they want all the cool things. Pencils are pencils and this year we can’t afford to get the clicking version, or the markers, stickers and whatever else seem like the cooler options.” But there were also a lot of “cooler” specials Jack and Michelle did take advantage of, one example—a new computer for the family! Michelle said, “we are skimping on some things and only buying the basics so we are able to pay for a laptop.” Wal-Mart was in fact advertising a bundle, which included, a HP laptop, printer, 4GB flash drive and laptop bag for around $440. I’m guessing her kids are going to be thrilled with a new computer, maybe slightly more than stickers.

 

Finally, the mall, which, have you been to the mall lately? It is packed, constantly—no recession there, right? But after walking around for a bit, I realize no one is buying anything, not a bag in sight and then I pass by Justice! Oh dear lord, or should I say, OMG! The popular store for girls was filled! And, by the way, it’s not super cheap, so what’s the deal? I pull aside Barb, mom of five, yes five, girls. She tells me about J Bucks and Funcards which are incentives for shopping. Shoppers are given store credit for every $50 purchase, which for these little fashionistas made a huge difference. Barb said she saves up the cards from birthdays and uses them during the redemption period and saves a lot. In talking to the girls, all of them don’t just love the clothes but they love the experience of shopping at Justice and would rather do without other things, like an allowance or snacks in order to shop there. Barb says that she has been saving in a lot of areas so she can afford to continue the back-to-school shopping tradition.

 

So, how are sales? Well even with all the discount strategies, specials and incentives, back-to- school sales are still faltering. We will know the facts within two weeks, when the season wraps, but currently spending is no better than last season, which is frightening for retailers that use back-to-school numbers to gauge holiday sales

 

As for my big non-expert revelation: Maybe this is the new way of spending money for Americans? Could it be possible that we are finally shopping with a conscience?

 

 

9/3/2010 9:34:51 AM