Commentary From Our Chairman / CEO
The ABC’s of Non-Foods for Back to School
Michael D. Sleeper, Chief Executive Officer, Imperial Distributors, Inc.
With each new school year, comes the need for students to replenish school supplies, accessories, and technologies. Back-to-school spending accounts for over $70 billion in annual sales with more than $2 billion in school and office supplies. Back-to-school is second in seasonal spending only to the Christmas season.
Projected back-to-school sales for 2014 are expected to increase this year by 3-4%. 44% of dads shop “on line”, while 88% of moms do most of their back-to-school shopping in traditional brick and mortar stores.
Back-to-school stationery sales in Mass and Drug retailers start in early July, peak in early August, and begin their decline in late August. On the other hand, back-to-school and stationery sales in grocery stores peak in late August, and experience no decline until the middle of September. It is critically important that supermarket operators understand these dates when planning back-to-school ads and promotions, as well as knowing when their local schools and colleges start for the year. Timing dictates when the “spike” in sales will take place. Traditionally, the “spike” occurs a few weeks before school starts and two weeks after.
While Mass retailers have taken some of the promotional, commodity stationery sales away from grocery, supermarkets’ unbeatable foot traffic and convenience, with one-stop shopping which provide opportunities to meet shopper’s basic back-to-school needs. Last minute Back-to-School shopping needs are best met in food stores.
Back-to-school shopping lists are a pivotal factor in determining what items consumers purchase. Often schools issue specific lists that students must have. In fact, over 80% of shoppers use a back-to-school list to determine their purchases. A good retail marketing approach is to get a copy of the lists from local schools, and have those “must have items” in stores’ back-to-school displays. Along with the basic list of school supplies student’s often need a new backpack, new lunch containers and a book bag.
“Back to Campus Sales” are bigger than ever. Stores located near colleges or universities sell General Merchandise products like area rugs, cleaning supplies, storage containers, fans, bed sheets, cutlery, computer accessories, room furnishings, refrigerators and small appliances. There items increase dramatically as college students move to dorms or off-campus housing. And for college-bound students, Dads spend 34% more than Moms on college supplies for their sons and daughters.
Following the ABC’s for Back-to-School is a sure winner to capture student’s needs from grammar school to college..
For comments or questions, contact us by phone at 508-756-5156, or e-mail: msleeper@imperialdistributors.com