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- Back to School Shopping - US - January 2012
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With anticipated spending of $22.8 billion and a 6.8% increase compared to 2010, the Back to School (BTS) shopping market showed signs of recovery in 2011. Nonetheless, growth in this competitive market is shaped by shifting tastes, as conscious teens and economizing parents intend to find the best values in a rapidly-changing digital media environment. The market embraces on one hand some of the most powerful retailers such as Walmart, Target and Macy’s, and on the other some of the newest and most innovative retailers, such as eCampus.com or 77kids by American Eagle. This report offers an in-depth analysis of the BTS shopping moment at this key juncture, as the economy makes a still uncertain and slow recovery. Additionally, the report:
- Explores which BTS segments show the best prospects for growth and which retailers are currently the most effective in reaching parents, tweens and teens
- Discovers innovative marketing strategies as retailers integrate social media and online marketing tools into varied campaigns for BTS shopping
- Probes parent and teen attitudes related to brands, supplies, clothing, fashion, style, and shopping
- Asks which consumers are using the internet for price comparison, as well as digital applications for price comparison and budgeting
- Examines the 2011 performance of leading companies and looks at which underlying drivers are influencing the wider BTS shopping market through 2016
Scope and Themes
What you need to know
Definition
Data sources
Anticipated spending data
Consumer survey data
Advertising creative
Abbreviations and terms
Abbreviations
Terms
Executive Summary
BTS anticipated spending reaches $22.8 billion in 2011
Computers and electronics have the highest anticipated spending in 2011
Shaky consumer confidence keeps shoppers focused on value in 2011
Hispanic children are becoming increasingly important to the BTS market
Online retail, second-hand shopping and school uniforms shape competitive landscape
Discount stores are top retail channel for anticipated spending in 2011
Mass merchandisers especially popular for BTS supplies
Sales data of BTS season show Target and Macy’s main winners
Innovations in 2011 include revamped stores, events and innovative use of mobile devices
Marketing strategies show aggressive discounting and high use of social media
Many favor low-end brand supplies, but mid- to higher-end apparel
Kids’ input is important to BTS purchases
Girls show greater interest in fashion and shopping compared to boys
Half of boys aged 6-14 consider shopping for clothes boring
Strong consumer interest in value without compromising quality
Most still undertake money-saving strategies during the BTS season
Race/Hispanic origin shapes outlook on shopping, BTS budgets and blogs
Insights and Opportunities
Social media becoming a crucial facet of BTS marketing
SNS offer a key tool for targeting tween and teen girls
Figure 1: Teens’ attitudes toward clothing and fashion, by gender and age groups 12-17, April 2010 - June 2011
Figure 2: Frequency of usage among teens, by gender and age, June 2011
Figure 3: Attitudes toward social networking among teens, by gender and age, June 2011
Challenges and opportunities for brick-and-mortar retailers
Integrating online platforms and brick-and-mortar units
Generating excitement around traditional BTS shopping
BTS season can benefit other non-traditional BTS retailers
Opportunities for smaller and local retailers
Inspire Insights
Consider this
Bottom line
Consider This:
Figure 4: Prevalence of obesity among children/teens aged 2-19, 1976-2008
Bottom Line
Anticipated Spending on BTS Shopping
Key points
SpendingPulse report suggests positive growth in 2011 BTS sales
Anticipated BTS spending between 2007 and 2010 reflects unfolding recession
BTS spending for 2011 suggests moderate spending and focus on value
Figure 5: Consumer anticipated spending on back to school shopping, at current prices, 2006-11
Anticipated spending in 2011 shows strong variation by segment
Figure 6: Consumer anticipated spending on back to school shopping, by segment, 2010-11
Moderate anticipated spending for 2011 in clothing and accessories
Figure 7: Consumer-anticipated spending on back to school clothing and accessories, at current prices, 2006-11
Anticipated spending on computers more stable than other segments
Figure 8: Consumer-anticipated spending on computers and electronics, at current prices, 2006-11
Anticipated shoe spending trends parallel those of clothing
Figure 9: Consumer-anticipated spending on shoes, at current prices, 2006-11
School supplies in decline as consumers economize in 2011
Figure 10: Consumer-anticipated spending on school supplies, at current prices, 2006-11
Market Drivers
Key points
Macroeconomic landscape as a central underlying driver for BTS market
Economic concerns still central for consumers shopping for BTS items in 2011
Figure 11: University of Michigan’s index of consumer sentiment, January 2007-September 2011
Consumer concerns translate into careful BTS shopping with focus on value
Figure 12: Money saving strategies for BTS shopping, by household income, October 2011
Demographic drivers – essential for BTS market growth
Growth in child population from 2011-16 will spur BTS demand
Figure 13: U.S. population, by age, 2006-16
Hispanic children population projected to grow faster than general population
Figure 14: U.S. Hispanic households, by presence and ages of children, 2009
Figure 15: U.S. Hispanic and non-Hispanic population of children, 2006-16
Competitive Context
Key points
Online BTS shopping sites can draw sales from brick-and-mortar stores
Figure 16: US online shoppers users and penetration, 2009-2015
Second-hand stores and websites for used clothes draw frugal parents
Use of school uniforms may undercut BTS apparel purchases
Figure 17: school uniform usage and received a list of items from school, by household income, October 2011
Figure 18: Money-saving strategies for back-to-school supplies and clothing, by household income, October 2011
Retail Channels
Key points
Most consumers anticipate using multiple channels
Anticipated BTS spending at online retailers sees modest increase 2010-11
Figure 19: Internet use, by household income, April 2010-December 2010
Most anticipate shopping at mass merchandisers and department stores
Figure 20: Consumer-anticipated retail channels for back to school purchases, 2006-11
Mass merchandisers lead supplies, department stores compete in apparel
Figure 21: Stores shopped for back-to-school supplies, clothing and shoes, March 2011
Leading Companies
Key points
Parents turn first and foremost to mass merchandisers
Figure 22: Top retail stores where purchases made in the last four weeks, by ages of children in household, Oct. 2009-Dec. 2010
Smaller fashion outlets draw teens
Figure 23: Teens’ top retail stores where purchases made in the last four weeks, by age and gender, April 2010-June 2011
Sales data for the 2011 BTS season from the largest companies
Walmart’s slim third-quarter growth suggests modest BTS sales
Target posts strong growth during 2011 BTS season
JCPenney’s 2011 BTS sales are lackluster
Kmart/Sears continue to struggle and see 2011 BTS sales slide
Macy’s posts strong 2011 BTS season performance
Innovations and Innovators
Key points
77kids launches concept Style Lab with interactive features
77kids and DMX make music integral part of brand, in-store and online
Office Depot uses SnapTag for mobile BTS promotion
Macy’s offers free BTS concerts in revamped mstylelab lounges
Macy's partners with DoSomething.org with in-store scans triggering donations
JCPenney’s “Pennies from Heaven” engages customers in-store, online
Kmart uses original web series to connect to youth and promote fashion
Kmart launches YouTube mini-series targeting Hispanic moms
Target draws BTS shoppers with electronics trade-in deal
Sam's Club launches BTS with free children's health and ID screenings
Marketing Strategies
Overview
Walmart targets economizing parents seeking basics at lowest prices
Walmart TV ads showcase convenience, low prices and price match guarantee
Website offers improved organization and added features for moms
Walmart’s outreach to tweens includes exclusive “Victorious” line
Figure 24: Brand analysis of Walmart’s BTS positioning, 2012
Target offers deals plus “cool” with original ads and mobile outreach
Ad spot for Target offers a “wink” at quirky teachers
Figure 25: Target ad featuring quirky 2nd grade teacher, TV ad
Other facets of Target’s BTS campaign
Online features of Target’s BTS marketing activity
Target revamps site and offers free applications to mobile users
Figure 26: Brand analysis of Target’s back to school positioning, 2012
Value-priced JCPenney showcases affordable style
JCPenney’s “Daydreamer” campaign links cool and accomplishment
Figure 27: JCPenney “day dreamer”, TV ad
JCPenney offers Facebook page for teens with JCP Teen
JCPenney launches Stardoll brand during the 2011 BTS season
JCPenney sponsors Dew Tour skateboard and BMX events
JCPenney Weekly Deals application offers deals to both moms and kids
Figure 28: Brand analysis of JCPenney’s back to school positioning, 2012
Macy’s uses innovative campaigns to create “magic” for teens
Figure 29: Macy’s back to school event TV ad, 2011
Macy’s mstylelab website and Facebook page offer interactive fashion features
Macy's partners with Latina magazine in multifaceted outreach to Hispanics
Kmart targets families on a budget with great deals and Layaway plans
Figure 31: Kmart’s 2-day sale TV ad, 2011
Figure 32: Kmart’s Layaway plan, TV ad, 2011
Figure 33: Brand analysis of Kmart’s brand and back to school positioning, 2012
Highlights of campaigns from electronics and office supply stores
Brand Level Preferences for BTS Supplies and Clothing
Key points
Most consumers seek lower-priced supplies
Figure 34: Brand price level of back-to-school items purchased, October 2011
Income drives upgrade to mid-priced offerings for writing instruments
Figure 35: Brand price level of writing instruments purchased, by household income, October 2011
More affluent shoppers willing to invest in mid-tier brands of other supplies
Figure 36: Brand price level of other school supplies items purchased, by household income, October 2011
Consumers ready to invest more in clothes, books, and backpacks
Figure 37: Brand price level of back-to-school clothing purchased, by household income, October 2011
Channel Preferences for BTS Supplies
Key points
Mass merchandisers heavily favored for purchasing BTS supplies
Figure 38: Stores shopped for back-to-school supplies by household income, part 1, October 2011
Office supply stores, dollar stores, and drugstores all attract BTS shoppers
Figure 39: Stores shopped for back-to-school supplies by household income, Part II, October 2011
Channel Preferences for BTS Clothing
Key points
Mass merchandisers share market with department stores for apparel
Figure 40: Stores shopped for back-to-school supplies by household income, October 2011
Other retailers attract BTS shoppers with deals and unique selections
Figure 41: Stores shopped for back-to-school supplies by household income, October 2011
Decision Makers for BTS Purchases
Key points
As children age, they have increasing input in BTS decisions
Figure 42: Decision maker on back to school purchases, by child age, October 2011
Moms more likely to report seeking input from kids
Figure 43: Decision maker on back to school purchases, by adult gender, October 2011
Teen Attitudes Toward Clothing and Fashion
Key points
Gender shapes attitudes toward fashion and shopping for kids aged 6-11
Figure 44: Kids’ attitudes toward clothing and fashion, by gender and age groups 6-11, April 2010-June 2011
Girls aged 12 to 14 place greatest emphasis on style and fashion
Figure 45: Teens’ attitudes toward clothing and fashion, by gender and age groups 12-17, April 2010-June 2011
Parents’ Attitudes Related to Clothing Styles and Brands for the BTS Shopping Season
Key points
Parents are aware of how much style, fashion, and fitting in means to kids
Figure 46: Attitudes toward clothing styles and brands, by child age, October 2011
Most find clothes too “grown up” and many seek approval of other adults
Figure 47: Parents’ attitudes related to “grown up” styles and the opinions of their peers, by child age, October 2011
About a third of parents are asked for advice on BTS shopping
Figure 48: Attitudes related to advice and clothes selection, by child age, October 2011
Parents’ Attitudes Toward Shopping with Kids, Value, and Budgets
Key points
Most parents enjoy shopping with kids
Figure 49: Attitudes toward shopping with kids, by adult gender, October 2011
Parents balance their kids’ wants, budget concerns, and quest for value
Figure 50: Attitudes related to quality and budget for back-to-school supplies, by household income, October 2011
Quality is key and budgets more flexible when it comes to BTS clothing
Figure 51: Attitudes toward price, quality and budget for clothing, by household income, October 2011
Teens aged 15-17 shop with greater autonomy
Figure 52: Attitudes toward shopping with kids, by ages of children in household, October 2011
Money-Saving Strategies for Back-to-School Shopping
Key points
Using sales racks, coupons, and price-tracking are main saving strategies
Figure 53: Money-saving strategies for back-to-school shopping, by household income, part 1, October 2011
About a third stockpile items and a quarter use websites to compare prices
Figure 54: Money-saving strategies for back –to-school shopping, by household income, part 2, October 2011
Fewer than one in 10 save money by using uniforms or school supply lists
Figure 55: Money-saving strategies for back-to-school supplies and clothing, by household income, October 2011
Use of Cell Phones and Smartphones to Budget and Make Lists
Key points
Figure 56: use of cell phone or smartphone for shopping and budgeting for BTS, by household income, October 2011
Figure 57: smartphone ownership and intent to buy, by household income, November 2010
Race and Hispanic Origin
Key points
Race/Hispanic origin shapes outlook on shopping, BTS budgets and blogs
Figure 58: Attitudes toward shopping for back-to-school supplies, by race/Hispanic origin, October 2011
Fashion central to blacks, sticking to budget a priority for Hispanics
Figure 59: Attitudes toward shopping for back to school clothing, by race/Hispanic origin, October 2011
Blacks most likely to use sales, watch prices, and stockpile to save money
Figure 60: Attitudes toward shopping for back to school clothing, by race/ethnicity, October 2011
Custom Consumer Groups
Affluent “Kids and Cabernet” segment warrants online BTS focus
Figure 61: Parents’ attitudes toward shopping for kids, for “kids and cabernet” mosaic segment, April 2010 - June 2011
Promising Families segment places primacy on family values
Figure 62: Parents’ attitudes toward shopping for kids, for “promising families” and “kids matter most” by mosaic segments part 1, April 2010-June 2011
Cohorts with Latin identity show distinct attitudes
Figure 63: Parents’ attitudes toward shopping for kids, by mosaic segments, part 2, April 2010-June 2011
Appendix—Other Useful Consumer Tables
Figure 64: Attitudes toward shopping for back to school clothing, by household income, October 2011
Figure 65: Attitudes toward shopping for back to school clothing, by child age, October 2011
Figure 66: Attitudes toward price, quality and budget for clothing, by child age, October 2011
Figure 67: Money-saving strategies for back-to-school clothing and supplies, by child age, October 2011
Figure 68: use of cell phone or smartphone for shopping and budgeting for BTS, by child age, October 2011
Appendix—Trade Associations
- ABC, Inc.
- Abercrombie & Fitch Co
- Adidas (USA)
- Amazon North America
- American Apparel & Footwear Association (AAFA)
- American Apparel Producers Network
- American Apparel, Inc.
- American Eagle Outfitters Inc
- Apparel Search Company
- Best Buy stores (USA)
- Big Lots, Inc
- Bloomingdale's
- Consumer Electronics Association
- Converse, Inc
- Costco Wholesale Corporation
- Craigslist
- Crayola LLC
- CVS Caremark Corporation
- CW Network, The
- Dick's Sporting Goods, Inc.
- Dillard's, Inc
- Dolce & Gabbana
- Dollar General Corporation
- Donna Karan International Inc.
- Faber-Castell Vertrieb GmbH
- Facebook, Inc.
- Family Dollar Stores, Inc
- Footwear Distributors and Retailers of America (FDRA)
- Forever 21 Inc.
- Foursquare
- GameStop Corp
- Gap (USA)
- Giorgio Armani S.p.A.
- Groupon, Inc.
- H&M Hennes & Mauritz
- Hot Topic, Inc
- International Council of Shopping Centres
- J C Penney Company, Inc
- Juicy Couture, Inc.
- Kmart Corporation
- Kohl's Corporation
- Lane Bryant stores
- LeapFrog Enterprises Inc.
- Los Angeles Times
- Macy's, Inc.
- MasterCard Incorporated
- Missoni S.p.A
- MySpace.com
- National Association of Retail & Thrift Shops (NARTS)
- National Office Products Alliance (NOPA)
- National Retail Federation (NRF)
- National Shoe Retailers Association, Inc
- Nickelodeon Networks
- Nike
- Nintendo of America Inc.
- Nordstrom
- Office Depot (USA)
- Office Furniture Dealers Alliance
- OfficeMax, Inc
- Old Navy
- Overstock.com Inc.
- Payless ShoeSource Inc
- Pentel Co., Ltd
- Pixar Animation Studios Inc
- Ralph Lauren Ltd
- SAM's Club
- Sears Holdings Corporation
- Sharpie
- Staples, Inc
- Stop & Shop/Giant-Landover Arena (Ahold)
- Target Corporation
- The Gymboree Corporation
- The New York Times Company
- The Salvation Army
- U.S. Bureau of Labor Statistics
- U.S. Bureau of the Census
- University of Michigan, The
- Vans, Inc
- Victoria's Secret
- Visa U.S.A. Inc.
- Walgreen Co
- Walmart Stores (USA)
- Walt Disney Company, The
- YouTube, Inc.
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