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08.26.2019 2019’s Back-to-School Shopping Trends: Profitability with Volatility

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With mornings and nights getting cooler and days getting shorter, families and retailers alike are preparing for the annual back-to-school shopping event. Retail companies face a balancing act of providing necessary supplies for diverse students with ever-changing needs while maintaining stock and inventory levels as the holiday season comes around the corner. Based on current and projected industry trends, the 2019 back-to-school shopping is more unpredictable than ever. Understanding the important trends will give your company an edge, allowing it to make the most of this lucrative event.

 

E-commerce is coming on the horizon

Still in 2019, brick-and-mortar constitutes most back-to-school shopping purchases with 57% of consumers choosing in-store over e-commerce. However, e-commerce is making inroads in this market, increasing to 29% of sales, especially in growth areas like technology purchases These consumers are coming from undecided shoppers, with the 57% market share of brick-and-mortar staying constant. Consumers choose their back-to-school shopping habits through price, convenience and choice – emphasizing businesses with large selection and lower prices to maintain advantage [1].

 

Retailers face greater competition for customers

Consumer spending per student on back-to-school is expected to stay roughly constant $520, up only about 2% [1]. However, as a whole, the industry revenue is decreasing due to fewer families with children. Marginal increase in consumer spend and less consumers means the businesses will have to work harder to maintaining customer loyalty. Customers are already aware of their increased buying power with 71% of consumers buying when products are on sale/discount [2].

 

Back-to-school shopping period is lasting longer

With families spending more on back-to-school than before and with increased focus on bargains, consumers are now taking longer to get all their supplies. While the season effectively ends in September, more shoppers are starting earlier, as early as beginning of July [3].

 

What these trends mean for you

These trends show increasing unpredictability in the back-to-school market, increasing risk for e-commerce and brick-and-mortar retailers to capturing this market. Maintaining back-to-school merchandise longer and increased individual shopping volatility run the risk of increasing unsold inventory heading into Thanksgiving and Christmas season – adversely affecting end-of-year books. Midas Exchange, a corporate trade company, can help alleviate that risk for your company, allowing your business to increase sales without the risk of excess inventory. Through WPP’s leading global marketing, your company can turn that excess inventory into marketing sales and dollars. Midas Exchange can purchase returned merchandise, excess inventories, short-dated products or unfinished goods, thereby reducing your company’s cash outlay on media expenses and reallocating funds towards the next shopping season.

 

Contact info@midas-exchange.com or call 212-474-0083 to learn how Midas has helped diverse companies uncover value from under-performing assets, increasing ROI and driving sales revenue. 

 

 

 

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