Blog

How Early is Too Early?

July 7, 2011 by Annamaria Turano — Executive Director, MCAworks

Retail analysts indicate that back-to-school (“BTS”) sales are getting earlier this year – and probably the earliest ever. The National Retail Federation reported that consumers spent more than $55 billion on BTS shopping in 2010. USAToday hinted that retailers are still nervous about consumer spending in a topsy-turvy economy” and may be why sales and promotions have started as early as July 1^st this year. In a recent USA Today, Marshal Cohen (chief retail analyst at NPD Group) states: "If they [retailers] can put the sale on and beat the competition to the punch, retailers can get consumers to buy before they normally would.” Key retailers such as Walmart, Target, Staples, Walgreens, and Office Depot are all launching BTS promotions this week. "We'll be replacing summer products with back-to-school ones," Target spokeswoman Kristy Welker says. "I know, it's sad." 

The underlying challenge for retailers is to create balance in the sales promotion scheduling: Balance the need to address 1) internal forces (retailers’ inventories), 2) competitive pressures (one-upping the nearest competitive store), 3) consumer demand (parents’ desire for convenience/freedom to shop over 2 months vs. 2 weeks), and 4) the schools’ actual schedules – without injecting more doom and gloom into the short summer season (and soft economy) for parents and children.

If the cycle continues at this rate, BTS promotions will soon start at the moment the final school bell rings… and transition immediately to Christmas holiday promotions with the start of the school year. Kristy Welker was right – it’s sad.

About Annamaria Turano

---

None

Connect with Annamaria: