Back-to-School Shoppers Are in the Stores

My search for "back-to-school shopping" returned 324 million results. Here are the top 4 from the list--all ads. Zappos, Walmart, Retailmenot (coupon site), and Staples. Zappos is promoting its "fast and free shipping," and its "huge selection." The others are promoting "save, save, save."

The LA Times notes that BTS is an $84 billion market (research by the National Retail Federation). And other research indicates that lots of shoppers are looking at price promotions carefully.

Most important, many BTS shoppers prefer to buy in person, to see, touch, and evaluate merchandise rather than click to buy. And when children are part of the process, they want a say in what gets purchased (which in some cases, results in a higher transaction amount). Legacy retailing is the beneficiary of this consumer behavior pattern.

Despite supply lists provided by schools, BTS shopping still needs organization. And that's where physical stores are doing their part to group merchandise needed by students for easy access. Nearly every store has a college dorm section, and a separate school supplies section. School days begin in a matter of days. Stores are ready to outfit students in advance, attracting shoppers to malls and big-box retail locations alike.

Back to School Begins in June

So soon? Staples has had backpacks and other school supplies prominently displayed in the front of its stores for several weeks--even before school was over!

Other retailers are already promoting back-to-school items, as shown here on Zappos and Dick's today. Visit any website catering to teens and parents (Old Navy, Walmart) and you'll see some school-related items featured.

Rushing the season? Partly...this is a definite trend for all retailers as they try to get a jump on the competition. It's also a function of changing consumer behavior, with parents being price-conscious and interested in bargains, even two months early.

Target has been mounting special college programs for years, and has begun opening smaller stores very close to college campuses, making it convenient for students and parents to browse and buy. "Growth on college campuses and in urban markets is a priority for Target," says a Target VP.

Go into any housewares/home goods store (Bed Bath & Beyond for instance) and dorm room products are the big focus, with helpful checklists and ideas for parents and students. IKEA has its dorm website ready, with body copy that begins: "Ready or not, fall's on its way, and with it, a new school year."

Amazon Prime Day in July may very well be a key turning point in buying for back to school. Not surprisingly, Walmart is battling Amazon on this front for a major piece of the pie. States also recognize the trend toward earlier purchasing and are moving their tax-free weeks earlier to accommodate consumer buying preferences.

Students may roll their eyes when they go into a store and see school-related products. But retailers want to get on the parents' radar and make an impression as the store or website to visit for back-to-school items. So while some people are thinking pool accessories and pickle ball, others are thinking pencils and packs. For savvy marketers, the plan is to present a solid value proposition, polish brand image, and encourage buyers to go ahead and buy--early.

Back to School: Marketing Locker Decor

Today's tweens and teens love to personalize everything--including their school lockers. Decorations for lockers are trendy these days, and a small but growing number of marketers have targeted this niche. This is the busy season, of course, and the companies are gearing up for their share of the market. Check any Target store or a local Hallmark and you'll see locker decor in the back-to-school section.

Some of these marketers are even inviting students to do a virtual mix 'n match of accessories and create their dream locker interior before buying.

For example:

• PB Teen has a locker decoration design site, one of several design tools specifically for back-to-school buying.
• Locker Lookz, which specializes in locker accessories, has a design site that allows users to choose between complete decor packages and one-at-a-time design.
• LuvUrLocker (above) has a drag-and-drop design tool to show how rugs, lights, and other decorations look together.

Back-to-School Marketing in Full Swing

The battle for back-to-school purchases has begun. Major retailers like Walmart and Target have been airing commercials and using digital and mobile ads to highlight their seasonal offerings. Walmart's Classrooms microsite brings together supply lists from thousands of U.S. schools, ready for printing or to consult via cell while parents are in the store. Walmart is also using loss-leader school supplies to attract price-sensitive parents.

Walgreen's is part of the "reverse showrooming" trend, in which retailers use mobile coupons or online coupons to bring shoppers into their stores. Showrooming occurs when consumers inspect products in a store and then buy from an online retailer instead. Using sales promotions to encourage in-store shopping, retailers hope that impulse purchasing will increase the size of each shopper's transaction.

Best Buy has a clever idea: "Buy Boards" on major college campuses invite students to use their smartphones and scan the code of electronics products they want to buy. Buyers can have the merchandise delivered to their dorms or ready at a nearby store for pickup.

Rushing the Season

Local schools had been closed for three days when the first back-to-school sales popped up in advertising inserts. Granted, back-to-school is the second-most lucrative selling season (#1 is, of course, Christmas/Hanukkah). Still, in early July, how many parents and students are going to stampede to Staples, Apple, JCPenney, Old Navy, and every other store that's running a back-to-school ad?

And this year's outlook is especially murky, unless some economic miracle comes to pass. A July 3rd story in the Chicago Tribune quoted Cheryl Bridges, director of the Center for Retailing Studies at Texas A&M University, as saying: "If a retailer breaks even for back to school, they're doing great." Not good news for retailers struggling for profitability. Shoppers are holding onto every last penny for as long as they can and holding out for the best sales before they buy.

This brings up another key question: Are retailers doing too much to rush every selling season? My answer: Yes.

Last year, some stores had Christmas cards and ornaments on display during late August. The image above shows Sears pushing Christmas in July. On January 2nd, I saw valentines and similar merchandise at center stage in CVS and other stores. It's common to see winter coats and boots front and center by July 20th. Halloween holiday items are on store shelves by August. And if you need a wool scarf on January 15th, you'll have to wade through racks of shorts to find them.

Is this good marketing? In a world obsessed by "new" and "improved," pencil cases and winter coats that have been in stores for weeks can look very "yesterday" and tired. Repositioning racks and shelves to give everything a fresh look can do wonders, but this tactic won't work for merchandise that's been on display for months (I know from my retailing days).

Costco and Zara and other stores capture shoppers' imaginations because there is always new merchandise shipping in. Costco is expert at marketing its "treasure hunt" items. Granted, Sears and Staples can't have treasure hunts for back-to-school merchandise. But I doubt that rushing the season will bring in any extra cash. It probably shifts some buying from a later period to an earlier period. And a sale might encourage consumers to buy a little from Store A if Store B is selling at regular price. But to just break even for the 2nd-largest selling season? Not the best strategy for an industry in crisis.