Well maybe.
Manufacturers and retailers of school supplies have been worried this year about how the lousy economy will impact consumer spending in the traditional back-to-school season, late July- mid September….depending on where you live. Back-to-School is the second biggest retail selling season (after Christmas) for retailers and for some manufacturers (backpacks, school supplies, etc.) the make or break time of year.
So, a recent study by the NPD group, reported in Progressive Grocer, must be sending shivers down spines across the country.
There should be much less consumer traffic in the stores aisles this back-to-school season, if the results of the NPD Group’s annual Back-to-School 2008 survey of consumers’ purchasing intentions are borne out in retailers across the country.
Not good, but not unexpected. During times of economic uncertainty, consumers cut back where they can. Not surprisingly, consumers in the survey said they would, of course continue to buy required school supplies but would cut back on apparel and footwear.
But NPD noted that intentions don’t always jibe with actual behavior.
“As the back-to-school season progresses, I think we will see that while parents’ early intentions are to cut back, in the end they won’t cut back on their kids all that much,” said chief industry analyst Marshal Cohen.
I’m not sure I totally agree with that assessment. While the report showed little if any “trading down” from higher end retailers expected, during other economic slowdowns that’s exactly what has happened. And consumer DO cutback, initially where they can without upsetting the kids.
What impact will this have on green business? As we’ve talked about before it depends on how well your product is positioned and priced. Expensive green alternatives may languish on the shelves this year during back-to-school. Those that provide a good price-value relationship, as well as being green will thrive. Consumers will still pay a premium for green products if they can see the benefit…just not a big one.
Photo Credit: Editor B at Flickr Under Creative Commons License
Related Posts About Consumer Behavior:
Green Consumers Pull Back – Now What? Recession Strategies For Eco Businesses
Survey Says: Consumers Will Pay More For Green Products
The Changing Face Of the US Consumer- What It Means For Ecopreneurs
