Posts Tagged ‘back-to-school’

Nevada Retailers Expect $245 Million In Back-To-School Spending, Up 15 Percent Over 2011

By Sean Whaley | 8:45 am August 15th, 2012

CARSON CITY – Nevada retailers and their online counterparts expect to see $245 million in spending on back-to-school merchandise for public school children this year, a 15.4 percent increase over spending levels in 2011, the Retail Association of Nevada (RAN) reported today.

College spending in Nevada is expected to generate another $134 million in what is as the second biggest consumer event for retailers behind the winter holidays, according to the National Retail Federation. The NRF reports that combined K-12 and college spending will reach $83.8 billion this year.

Photo via Wikimedia Commons.

“Parents want to make sure their kids have everything they need to start the new school year and are willing to spend more than ever on school-related necessities,” said Mary Lau, president of RAN. “However, the economy remains a concern in most households, which will have an impact on the way families shop. Bargain-hunting will remain important to budget-conscious consumers.”

According to the latest survey results from the NRF, families nationwide with children in grades K-12 are expected to spend an average of $689 on clothing, backpacks and other supplies. The latest estimate is a 14.1-percent increase from the estimated $604 spent last year.

According to demographics released by Nielsen Marketplace, there are approximately 1 million households in Nevada, and 34 percent (or 355,000 households) have one or more children in grades K-12. Assuming national trends as reported by the NRF generally hold true for Nevada families, total spending in the state will reach approximately $245 million. Due to an increase in both the count of families with children entering elementary or middle school, and an increase in spending per family, back-to-school spending in the state is expected to increase 15.4 percent compared to last year when total spending was an estimated $212 million.

As for college-bound students, the NRF estimates families will spend an average of $907 on new clothes, dormitory or apartment furniture and other college supplies. Compared to last year’s estimate of $809, college spending is expected to increase 12.2 percent.

Utilizing the latest estimate of Nevada residents who will be enrolled in undergraduate and graduate degree programs within and outside of Nevada in the coming school year released by the U.S. Census Bureau’s American Community Survey, aggregate back-to-school spending on college supplies is expected to increase this year as well. Again, assuming Nevada residents follow national trends, college spending is estimated to reach $134 million, compared to $120 million in 2011.

Bryan Wachter, director of government affairs for RAN, said back-to-school spending is exceeded only by the Christmas holiday season.

“Back-to-school is for a specific purpose, and we feel we can measure it pretty accurately,” he said.

Wachter said clothing and electronics, from calculators to laptops to phones, are the big spending categories.

“Electronics, not quite but almost, total clothing,” he said. “The average person is going to spend about $250 per student on clothing and we’re going to spend about $225 on electronics.”

The spending increase is due in part to some increased confidence among Nevadans that their jobs are more secure, Wachter said.

The Internet is continuing to grow as a preferred shopping “destination” for back-to-school items. Approximately 39.6 percent of consumers will be using the Internet to shop for needed supplies, nearly double the 2007 estimate. That said, discount stores are expected to be the most popular shopping destination, with 67.1 percent of consumers planning to shop there. Department stores followed with 59.9 percent.

-

Audio clips:

Bryan Wachter of RAN says back-to-school shopping is a huge event for retailers:

081512Wachter1 :15 on back-to-school items.”

Wachter says spending on electronics now nearly equals spending on clothes:

081512Wachter2 :12 $225 on electronics.”

Back To School Spending Could Be Boon To Nevada Retailers Hit Hard By Recession

By Nevada News Bureau Staff | 4:08 pm August 3rd, 2010

CARSON CITY – Nevada families with school-age children will spend $174 million for back-to-school supplies this month if spending trends track with national estimates, the Retail Association of Nevada reported today.

Just under 30 percent of an estimated one million households in Nevada are expected to have one or more children in grades kindergarten through 12. According to the National Retail Federation (NRF), the average American family will spend $606 on clothes, shoes, supplies and electronics to prepare to head back to school. This translates into approximately $174 million in back-to-school spending by Nevada families.

Nevada’s estimated 435,000 school children are headed back to school at the end of August, and if spending trends in Nevada resemble those being reported nationally, they will be spending approximately 10.5 percent more per family than last year.

Mary Lau, president of the Retail Association of Nevada, said: “If national forecasts hold true, a 10.5 percent increase in back-to-school spending would be fantastic news for Nevada retailers. However, increased national spending forecasts this past Christmas shopping season did not come to pass for many of them.

“Consequently, we remain cautiously optimistic that increased expectations for spending during this back-to-school shopping season will materialize within the state,” she said.

With Nevada having the highest unemployment rate in the nation at 14.2 percent as of June, “it seems somewhat unlikely that we will witness the extent of increases expected for the nation’s retailers,” Lau said.

The largest category of back-to-school spending is clothing, with families estimating they will spend $225 on pants, shirts, and jackets, among other apparel. The latest taxable sales results in Nevada suggest clothing sales are on the rise, with sales up 10.7 percent year-over-year for the month of May.

Overall Nevada taxable sales have been lagging for many months, however, with growth seen only once in 21 monthly reports through May 2010.

In the NRF survey, electronics were a close second, with families expecting to spend $182 on laptops, smart phones and MP3 players. Families expected to spend $103 on shoes, and finally, $96 on school supplies.

Families with college-aged students are expected to spend $616, down slightly from the previous year’s $618, on new apparel, furniture, school supplies and electronics. With the U.S. Census Bureau’s American Community Survey estimating 127,000 students enrolled in college and graduate programs in Nevada, this translates into an estimated additional $78 million spent by those requiring back-to-school purchases to pursue higher learning.

The Retail Association of Nevada also reports that in addition to having the highest unemployment rate in the nation, the state has one of the highest rates of homelessness among school children and school children living in poverty. Despite smatterings of positive developments in the state, challenging economic conditions may depress back-to-school expenditures for a significant number of families this season, the association said.

The data was generated for the association by Applied Analysis, a Nevada-based firm providing information and analyses for the public and private sectors.