More Consumers and Retailers Focus Online for Back-to-School
By Doug Desjardins
With consumers struggling to make ends meet, retailers are getting more creative in their efforts to capture a share of shrinking back-to-school budgets. And for most retailers, that's meant using Internet marketing to drive sales both online and in stores.
Retailers knew they would have a tough time this back-to-school season when retail sales fell 5% in July and the National Retail Federation predicted an 7.7% drop in back-to-school spending in early August. And while many relied on time-tested sales drivers like Sunday circulars and other traditional advertising, more retailers than ever turned to the Web for their most ambitious projects.
Google executives in August reported that the number of consumers browsing the Internet for back-to-school shopping deals soared this year with searches for coupons jumping 40% compared to last year and searches for buy-one-get-one-free coupons rising 30%. Google's search numbers also reflected an ongoing migration to discount retailers with Google reporting a 160% increase in searches coupling "Wal-Mart" with "school supplies." Google executive Dan Schock noted that people are using the Web to do "comparison shopping" before they visit stores or make online purchasing decisions.
Retailers and manufacturers are taking advantage of the online traffic jam by creating exclusive deals for online shoppers, a break from past when deals were used to drive customers into stores. Retailers and suppliers including Kmart and Old Navy are offering free shipping for online purchases of more than $50 on back to school deals at Ultimate Coupons. Sears and Target are taking a different approach, offering $5 off each purchase of $50 or more for back-to-school items. Midwest discount retailer Meijer is offering an even better deal with $10 off each purchase of $75 or more.
A national poll of 8,500 consumers by the National Retail Federation (NRF) provided even more evidence that retailers with good online marketing and sales are winning the battle for back-to-school shoppers this summer. The poll ranked Wal-Mart, Target, J.C. Penney, Staples and Kohl's as the top back-to-school e-commerce sites for 2009.
While those numbers show that consumers are looking to the Internet when buying back-to-school products - or just about anything for that matter - they also show retailers are getting more creative and competitive to capture consumer dollars during the worst economy since The Great Depression.
"Price is an important factor when it comes to back-to-school shopping but there are other aspects to consider," said Mike Gatti, executive director of the Retail Advertising and Marketing Association, a division of the NRF. "Unique and creative marketing campaigns coupled with the right prices will be the key to driving sales."