Back-To-School Shoppers Are Procrastinating This Year
August 18 2010 - 11:30PM
Dow Jones News
As retailers watch the back-to-school buying season near its end
while reporting sluggish sales, the National Retail Federation says
less than half of consumers have made all of their purchases.
The NRF said its survey is in step with retailers' comments
during second-quarter earnings calls about how people are buying
closer to need as the economy has weakened.
"The good news is there is still a lot of shopping to be done,
even if people are headed to the sales racks," said Kathy Grannis,
spokeswoman for the NRF. "Families may be buying on a budget and
buying only what is necessary."
The NRF expects $21.4 billion to be spent this year on supplies,
clothing and electronic devices for children in grades K through
12.
More people will shop online in the next couple of weeks than
they did last year, which the NRF attributes to retailers' stepping
up their Web presence and the promotions and marketing they are
engaging in.
For the college crowd, more consumers are expected to shop at
department stores this year than in 2009, and they are seen doing
more of their buying online and in electronics stores.
Initial indications show a timid consumer, with the NRF saying
that retail sales in July rose 3.1%, the latest available data.
Retailers are ready for what may come, although they have been
ordering merchandise cautiously. Target Corp. (TGT) is focusing on
value, with initial results for back-to-school and back-to-college
"encouraging," said Target merchandising chief Kathee Tesija during
the retailer's earnings call Wednesday.
Apparel retailer Citi Trends (CTRN), which has a large share of
low-income customers, is also seeing some buying, said Oppenheimer
Equity Research analyst Pamela Quintiliano.
While Citi Trends is seeing declines in same-store sales this
month, the magnitude of the decline has lessened from prior months,
and Quintiliano attributes that, in part, to back-to-school
shopping.
The back-to-school buying season generally runs from July
through Labor Day, which this year is Sept. 6.
-By Karen Talley, Dow Jones Newswires; 212-416-2196;
karen.talley@dowjones.com
Citi Trends (NASDAQ:CTRN)
Historical Stock Chart
From Jun 2024 to Jul 2024
Citi Trends (NASDAQ:CTRN)
Historical Stock Chart
From Jul 2023 to Jul 2024
