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Consumers expected to scrimp on back-to-school shopping

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The economic downturn is expected to have a major impact on back-to-school spending, with 85% of Americans making changes to their back-to-school plans this year.

The average family with students in kindergarten through high school is expected to spend $548.72 on back-to-school merchandise this year, a decline of 7.7% from $594.24 in 2008, according to a survey released today by the National Retail Federation. Total back-to-school spending is expected to reach $17.42 billion.

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The survey found that back-to-school shoppers plan to hunt for sales more often (56.2%), spend less overall (49.6%), purchase more store-brand or generic products (41.7%) and increase their use of coupons (40%).

“The economy has clearly changed the spending habits of American families, which will likely create a difficult back-to-school season for retailers,” said Tracy Mullin, president of the retail federation. “As people focus primarily on price, strong promotions and deep discounts will ultimately win over back-to-school shoppers this year.”

Spending in most back-to-school categories is expected to decrease, with one bright spot: electronics. With personal laptops and desktop computers increasingly affordable for most families, spending on electronics and computer equipment is expected to increase 11%. According to the survey, the average family plans to spend $167.84 on electronics, compared with $151.61 last year.

Families will also spend an average of $204.67 on clothing and accessories, $93.59 on shoes and $82.62 on school supplies.

The poll of 8,367 consumers was conducted from June 30 to July 7 and has a margin of error of plus or minus 1%.

Although discount stores (74.5%) will be the most popular destination for back-to-school shoppers, the number of people planning to buy school items at drugstores is expected to rise.

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According to the survey, 21.5% of families will shop at drugstores for back-to-school items, compared with 18.2% last year. Drugstores have become more popular recently as their merchandise mix has broadened beyond health and beauty products to include school supplies, small electronics and groceries.

In addition to discounters and drugstores, more than half of back-to-school shoppers will head to department stores (54.4%), nearly half (48.4%) will shop at a clothing store and 41.2% will visit office-supply stores.

Also, 22.2% will shop online, 20.8% will shop at electronics stores and 18.2% will shop at a thrift store.

-- Andrea Chang

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