--College Students Spending $850 Each--
Washington, DC, August 19, 2003 - Tuition is just the tip of the iceberg when it comes to college expenses, according to the findings of a new National Retail Federation (NRF) survey. The first annual NRF 2003 Back-to-College Consumer Intentions and Actions Survey, conducted by BIGresearch for NRF, found that the average consumer buying back-to-college merchandise will spend $665.86, pumping $25.8 billion into the economy. In addition, NRF estimates that back-to-school spending (spending on school-aged children ages 6-17) will total $14.1 billion.
When combined, the $39.9 billion that will be spent on back-to-school and back-to-college merchandise this year should account for more than four percent of total annual GAFS (general merchandise stores, clothing and clothing accessories stores, furniture and home furnishings stores, electronics and appliances stores, and sporting goods, hobby, book and music stores) sales, second only to the holiday season.
Most college students will purchase textbooks (75.8%) and school supplies (76.9%) this year with more than half also purchasing clothing (57.2%) and shoes (52.6%). Consumers will also purchase electronics and computer-related accessories (37.0%) and dorm or apartment furnishings (22.6%).
Retailers' focus on back-to-college merchandise began in the late 1990s, with a small number of retailers marketing reasonably-priced storage containers and home furnishings to students moving away from home. Due to their success, retailers in all sectors have begun to pay special attention to the college crowd, promoting colorful home furnishings and practical appliances to fit a young adult's budget.
"For years, retailers have known how important the back-to-school season is for sales, but are just beginning to realize the impact of college spending," said NRF President and CEO Tracy Mullin. "Students are heading to the stores looking for trendy, low-priced merchandise they can take with them to the dorms, and retailers are more than willing to fill their demands."
Traditional college-aged students plan to spend the most returning to campus, with the average 18-24-year-old allotting $842.66 for everything from comforters to computers to coats. Demonstrating the buying power of today's students, the total amount spent by young adults on back-to-college merchandise is projected to be $11.3 billion, more than 40 percent of the total.
"Retailers are realizing that college students have money to spend and are more than willing to invest in products that will make their transition from home to the dorm easier," said Phil Rist, Vice President of Strategy for BIGresearch. "Parents are also willing to chip in on purchases to ensure that their children go off to college with the materials and confidence to succeed."
Like their parents, the back-to-college crowd is extremely price-conscious, with 56.8 percent planning to shop at discount stores and 23.0 percent heading to resale stores or thrift shops. Sales at college bookstores should also be strong, with 57.4 percent planning to shop at their college bookstore for items. More than 30.0 percent of consumers will head to department stores and office supply stores for purchases, and over 20.0 percent of consumers buying back-to-college merchandise plan to shop online.
This is the first back-to-college survey that NRF has conducted; therefore, previous data are not available.
About the Survey
The NRF 2003 Back-to-School Consumer Intentions and Actions Survey was designed to gauge consumer behavior and shopping trends related to the Back to School season. The survey, which polled 7,773 consumers, was conducted for NRF by BIGresearch from August 7-13, 2003. The consumer poll has a margin of error of plus or minus 1.0 percent.
BIGresearch is a consumer market intelligence firm that provides unique consumer insights that are gathered online utilizing very large sample sizes. BIGresearch's syndicated Consumer Intentions and Actions survey monitors the pulse of more than 7,000 consumers each month to empower its clients with unique insights for identifying opportunities in a fragmented and changing marketplace.
The National Retail Federation (NRF) is the world's largest retail trade association with membership that comprises all retail formats and channels of distribution including department, specialty, discount, catalog, Internet, independent stores as well as the industry's key trading partners of retail goods and services. NRF members represent an industry that encompasses more than 1.4 million U.S. retail establishments, employs more than 20 million people -- about 1 in 5 American workers -- and registered 2002 sales of $3.6 trillion. NRF's international members operate stores in more than 50 nations. In its role as the retail industry's umbrella group, NRF also represents 32 national and 50 state associations in the U.S. as well as 36 international associations representing retailers abroad.
For more information about NRF, visit us at www.nrf.com/
