REPEAT:ICSC Cegielski: Sees Aug Back-to-School Bargain Hunting

Repeats Story Initially Transmitted at 18:10 GMT Aug 9/14:10 EST Aug 9

--70% of Shoppers Plan To Spend More in 2017 Than In 2016

--Shoppers Favor Stores With Both Physical/On-line Presence

By Vicki Schmelzer

     NEW YORK (MNI)   - Back-to-school shoppers will be hunting for bargains in

August, repeating the pattern of prior years, Stephanie Cegielski, vice

president and spokeswoman for the International Council of Shopping Centers

(ICSC), told MNI in an exclusive interview while offering observations on the

ICSC's previously-released Industry Conditions report.

     The result could be a boost to August retail sales, even as seasonal

adjustment factor will expect a rise in unadjusted sales for clothing and school

items. The data for July retail sales is scheduled to be released on August 15

and the report on August data will bon September 15.

     This year, 70% of back-to-school (BTS) shoppers planned to spend more on

shopping than in 2016, 4% planned to decrease spending and 26% said spending

should stay the same, the report showed. 

     "August remains the most popular month for shopping," with 82% of shoppers

making purchases that month, accounting for 51.3% of total spending, the ICSC

report said.

     The ICSC poll of 1,010 adults, taken July 6 to 9, by ORC International on

behalf of ICSC, found that over half of shoppers, i.e. 51%, "believe August is

the best time to find bargains, while 30% feel the same about July, Labor Day

weekend or later (13%) and June (6%)." 

     BTS "have spent or intend to spend an average of $353 on merchandise,

including clothing, footwear, school supplies and electronics" in 2017. 

     While this would appear to be much lower than the $657 per household

average reported in the 2016 ICSC survey, Cegielski explained that "the

methodology this year was slightly different than in years prior."

     "We broke out K-12 and college spending from one another to better

understand back-to-school spending patterns; The 2016 figure is not comparable

to the 2017 figure of $353," she said.  

     In July 2017, K-12 BTS shoppers had spent or planned to spend on average

$309.60 on clothing footwear, school supplies and electronics versus $437.70 for

college shoppers, the ICSC poll said.   

     Continuing the pattern of recent years, in 2017, U.S. consumers will be

"doing more research to find the best prices," Cegielski said. 

     MNI asked whether there has been a fundamental shift in shoppers' mindsets

since the U.S. financial crisis that began nearly 10 years ago. Are U.S.

consumers so used to getting discounted goods that they are reluctant to pay

full price? 

     "Consumers are definitely more price conscious today," with their

cost-cutting efforts aided by advancing technology, Cegielski said. 

     U.S. consumers' desire for savings "is enabled by their ability to research

prices on their smart phone prior to making a purchase," she noted.

     For back-to-school purchases in 2017, U.S. shoppers preferred retail stores

with both a physical and on-line presence.

     "We definitely see that omnichannel retailers are having more success and

expect that to continue," she said. 

     The ICSC poll found that 91% of shoppers planned to spend at brick and

mortar stores in 2017 versus 95% at physical stores in 2016. But, "this

percentage increases to 97% if online shopping from retailers with a physical

presence is also included," the ICSC survey noted.  

     "Consumers want to have the option to either shop online or in-store, or a

combination of the two," Cegielski said. 

     As example of a top on-line retailer, U.S. shoppers in 2017 planned to

spend about 12% of their purchases through Amazon, which was "slightly higher

than last year," she said. 

     In terms of gauging consumer spending for August, a trip to the mall or

open-air shopping center is not just about back-to-school spending. 

     In 2017, 60% of those polled in the ICSC survey planned to dine at

restaurants/food courts, 28% planned to see a movie, 27% to get a haircut or use

some other personal service, 12% planned to go to the gym, go bowling/rock

climbing or some other "family friendly activity, 10% to attend such events as a

concert/other performance, 6% to participate in/ contribute to philanthropic

campaigns, 6% to attend school, a seminar, or some kind of training.

     "More and more consumers are looking to dine out or looking for an

experience during their visit," Cegielski said. 

     ICSC has been "looking more closely" at these "relatively new trends," she

added. 

--MNI New York Bureau; tel: +1 212-669-6438; email: vicki.schmelzer@marketnews.com