Kid's Apparel Sales Sink for Back-to-School
By Doug Desjardins
Department stores, specialty retailers and mass merchants all count on back-to-school shoppers to drive apparel sales in August and September, but that annual boost in spending is coming up short this year.
With consumers cutting back on spending, many parents are spending less on kid's back-to-school clothing and many are cutting it out of their budget altogether. According to a survey from the NPD Group, only 52% of parents said they plan to spend money on apparel this year compared to 60% in 2008 and just 39% plan to buy footwear compared to 48% last year. Those drops of 8% and 9% respectively represent the two largest declines in intent-to-spend of the 10 product categories included in the survey.
"Consumers are clearly putting need over desire," said Marshall Cohen, chief industry analyst for the NPD Group. "They will be more highly influenced by value than by fashionable or trendy products." That was reflected in another survey finding that showed just 13% of parents will base their buying decisions on trends and fashions compared to 18% in 2008.
These trends show in sales results for trendy kid's retailers that usually clean up in August and September as parents load up on back-to-school clothes. Specialty clothing retailers are reporting a sharp drop in August same-store sales including American Eagle Outfitters (down 7%), The Children's Place (down 8%) and American Apparel (down 20%).
With more people than ever migrating to discount stores and mass merchants for shopping, those retail channels were more than happy to fill the void for kid's apparel. Wal-Mart is having great success with its "Miley and Max" back to school line. The new fashion line for teens that teamed Disney star Miley Cyrus with fashion designer Max Azria is bargain priced with everything below $20. Target took the same approach with a 20% discount on Shaun White apparel for boys and discounts on hits Xhilaration line for girls. And Kmart is selling clothing in its French Toast line with shirts starting at $5.99.
Value-conscious consumers are also migrating online to look for coupons and discounts. Target is providing free shipping for online apparel purchases of $50 or more and Kmart is offering 99-cent shipping on back-to-school footwear. Kohl's has cut prices on its Urban Pipeline apparel line by 40% to 55% to lure trend-conscious shoppers into stores.
At Ultimate Coupons, you can find a The Children's Place coupon good for 15% off any purchase (good through Sept. 7). There are also Famour Footwear coupons good for 20% off footwear with free shipping.
One bright spot for apparel retailers is that they may get a late rush in spending. A National Retail Federation study shows that only 41% of shoppers had completed their back-to-school shopping by mid-August. And many consumers are making purchases in increments as money becomes available week by week.