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Retailers can expect stiff competition for fewer sales this back-to-school

July 19, 2013

It's the second biggest spending season behind Christmas, so it's no surprise retailers (and shoppers) are already revving up for back-to-school. But according to recent reports, retailers should expect more competition for lower than expected sales.

According to a special ICSC-Goldman Sachs consumer tracking survey, the percentage of consumers shopping for back-to-school items at this time of the season is 33 percent lower than in 2012. The National Retail Federation expects back-to-school sales to tally only $72.5 billion, down from $83.8 billion last year.

In an article on nbcnews.com, Kathy Grannis, a spokeswoman for the NRF, said retailers will all be vying for the same consumer — the parents who by necessity shop for the must-have items, in order to ready their children for the upcoming school year.

"We're expecting retailers to be incredibly promotional," Grannis said.

The ICSC survey forecasts the average household expenditure on all types of back-to-school items to be about $285 this year. Forty-five percent plan to spend the same amount as last year, while only 17 percent indicated they would spend less. Of the 42 percent of consumers that plan to increase spending, nearly three-fifths indicated that the bulk of their shopping will be to replace wardrobes and school supplies.

Read more about consumer behavior.