Numbers are in and Back to School Spending is Up - Discount Shopping Also Up

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70% spent the same to “much more” on back to school in an RBC Capital Markets survey. Discount Retail Store Services reports on what this means to discount stores that target teens.

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Discounters continue to perform well as consumers are most focused on price and fashion, according to RCB’s survey.

In a survey of 1,400 back to school shoppers said they “plan to” or “have spent” “the same” to “much more” on back to school shopping when compared to last year. As usual the largest expenditures were in the area of clothing and apparel, but school supplies also played into the equation. Among the popular brands according to the article were Abercrombie & Fitch, TJX Cos. and Ross among others. The article mentions that “Discounters continue to perform well as consumers are most focused on price and fashion, according to RCB’s survey.”

This falls in line with a recent Scarborough Research/ Arbitron Inc. study on mall shopping habits that revealed that teens between the ages of 12 and 17 are spending more money, but on less expensive items and that they were more likely to look for discounts, coupons, and other deals. In this study 75% of teens said that discounts were more important than they used to be, 52% said they chose to shop at less expensive stores, and 48% said they used coupons more often.

According to advisors at Teen Store Developers, teens and the parents shopping for them may be spending more money, but discount retailers and other shops appealing to teens are likely here to stay. For more details please see the attached video. A similar development has been happening in the area of dollar stores, as this business model is quickly catching up to larger discount and wholesale retailers like Wal-Mart.

Teen Store Developers went on to note the importance of appealing to the specific teenage demographic as a more expensive retailer would, just without the high markups on products. This includes fashionable or trendy store layout, popular music, and quality products. They believe that Teen Stores that follow a discount model similar to the one laid out by dollar stores may see even higher returns in the future.

Discount Retail Store Services is a business development company helping entrepreneurs start a business by covering all of the core tasks including site location, lease negotiation, financing, build-out, business training, new store oversight, and ongoing wholesale support and marketing support. Opening nearly 3000 independently owned stores to-date, they specialize in six business models including dollar stores, clothing stores, teen stores, party stores, mail box stores, and fitness centers. Find out about upcoming news on Facebook.

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David Heintzelman
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