RTTNews - A recent report suggests that consumers are planning to spend less money on back-to-school shopping, just one of many cost cutting measures most are taking in order to save money during the current recession.
In a survey released Monday by Deloitte LLP, 32 percent of consumers said they are saving more this year, and 64 percent said they would spend less during the back to school shopping season.
While the percentage of those spending less on back to school shopping is eight percentage points less than last year's number (71), the amount of consumers spending less money in general is ten percentage points higher than the previous year (22).
Although retailers may not see as many wallets snapping shut as they did in late 2008, consumers still plan to stretch their dollars, telling us that their shopping remains constrained, Stacy Janiak, vice chairman and U.S. retail leader of Deloitte, said in a prepared statement.
Retailers should focus on delivering the best incentives and in-store experiences to get the most out of the back to school season this year, she added.
Specifically, 80 percent of respondents said they would spend less on clothes for the back-to-school season, and 49 percent said they would spend less on shoes. Thirty-two percent said they would spend less on supplies, and 30 percent said they would spend less on book bags.
One of the main reasons for the increase in frugality was the rising number of job losses, according to Deloitte. The survey reported that 22 percent of consumers said they would spend less because of a job loss in the household.
In June, the jobless rate was reported at 9.5 percent, the highest since 1983. Fifty-five percent of the respondents said that concerns about the economy were another reason for a decrease in spending.
Other respondents said they would spend their money more wisely this year. Sixty-five percent said that they would spend only on what their family needs, and 74 percent said they would buy more items that were on sale. Fifty-five percent said they would use more in store coupons.
In today's tough environment, retailers' principal marketing strategies should include coupons, sales and loyalty programs, Janiak said. And with more than three-quarters of shoppers expecting to do the bulk of their shopping in August, retailers can implement promotions now that may encourage customers to spend a greater share of the back-to-school budget in one place.
She added, Campaigns that are both strategic and creative, such as mobile alerts or coupons, can target a specific customer segment, better engage shoppers and build loyalty.
Deloitte's survey polled 1,044 consumers from July 6 to July 9. The margin of error was plus or minus three percentage points.
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