You're watching...
Catherine Moellering on unique strategies being used by retailers to lure shoppers
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
We have happen marring joining us -- executive vice president Toby.
Thanks for coming -- -- Friday right so what are the numbers National Retail Federation says it's up this year down right bad National Retail Federation is projecting.
Thirty billion and when you add -- and why it.
Families are gonna spend for college.
Out -- out going on students we're looking at another fifty so right around eighty billion says about thirty million for kindergarten to twelfth grade exactly and they go off to college and another another T -- does not including tuition yet.
Flat at eighty billion so significant for retailers so is this like the biggest shopping season after Christmas you're asking right second second after Christmas but what makes it unique.
Is Christmas obviously is a date -- -- specific date and it's much easier for retailers to figure out -- retail strategies because they have a sense of you know when it's gonna peak and when it's gonna fall.
Back to school is really a moving target.
We have.
According to some more surveys we have evidence that some consumers are starting to shop as early as July actually 35%.
Of consumers there's already starting.
The -- and that's up as well and that's good news for retailers because retailers did not want to get left holding the bag in terms of inventory so the earlier they can get consumers through the door is buying back to school supplies that's.
Better off they are absolutely.
I'm in actually won -- that new developments in the back to school landscape is actually something that teen -- started on -- -- which asserted the young younger sister above.
He has just announced that this year they are creating something called back to school Saturday.
And it -- launching on August 11 and I love this idea.
Because what they're doing is they're sort of you know.
Putting and putting up -- are putting a flag down and saying okay this is the official start of the back to school season and it's a really Smart.
I'm idea and actually it is ten year fashion's night out which boat started.
And sit and in this -- sign -- but -- is -- in September yet.
And so I'm we're excited to see how this is gonna -- on impact to be -- landscape.
We now already that there are many great retailers are participating everyone from steep falls to clean neat to -- has stalled American Eagle Outfitters.
And I predict that this is gonna be very successful and it's just gonna continue to -- so I love that we're only seeing some of the best deals even though it's still a little bit early yes you know great question right now -- pretty much across the board because of retailers are concerned.
Even now we're seeing.
Survey that shows that retailer the candidate and spend more than spend 688 dollars and 88 it's a lot that's up like a hundred bucks from last year it was not yet and so on so that's good news -- and the bad news is that they're definitely not shopping at full price so for retailers they're being very aggressive with promotions and we're seeing that kind of promotional.
Activity across all channels everything from the discounters all the way up -- into the luxury segment.
On what we're also seeing is a lottery -- trying some really innovative ways to get consumers since the story is one of the ones I think it's really -- is JC Penney.
Is operating free haircuts -- he had -- all kids.
-- at their in store salons throughout the entire month of August I think that there are now on -- -- Another one that I love is Macy's.
One of -- at one of everyone's favorite retailers.
It off varying -- spelling B 727 stories they're gonna have a spelling bee and the winner takes have a hundred dollar gift certificate plus an iPad so not bad.
Not bad -- all that got pretty big math prize for nine had a -- -- -- from -- -- and you as a talking -- I can't help but think about the news this morning which is two things we got.
The GDP reporting and the consumer spending part of it which is 70% of the economy.
That came at the slowest pace in a year obviously even though we're projected to spend over 680 bucks to send their kids back to school.
We are watching her spending -- -- anywhere relying on promotions.
And that brings me -- my other -- point JC Penney now is bringing -- the term clearance yes I now because we're still in a mind set to open its clearance I don't care it's the wrong size or a -- -- down into it's a good deal we're gonna go and shop there -- -- -- though it's I'm.
It's indicative of the fact.
That the consumer has been educated to look for a deal and I don't think she's gonna give that up anytime -- and we and a soft -- now they're trying -- I think Alan and then the other thing gets interesting is as e-commerce starts to grow they too are getting bitten by the promotional by.
Particularly when it comes to free shipping -- and that's been the big development for this back to school period.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- that retailers are really having to take a look internally either cutting out of their SD NA.
Or they're having to figure out how to lower -- cost of goods in order to march -- out at some level where these promotions -- completely.
Put them into.
Negative situation and that's school has become -- -- is hearing is from the against the CEO of -- it has become such and an electronic data kind of landscape as well so how our ability electronics retailers in the iPad and all these out he's targeting back to school at -- such a great question.
What it one thing that we're seeing as best I -- has put billboards on select campuses across the U -- And their featuring sort of the ten must have back to school electronic products.
And then -- images have embedded Q our heads to the students I end.
Scanned them like they're Smart -- which we all know they have.
And what I love is that they will actually have this products shipped right to the campus.
I'm making it cheaper safer easy add another and the kind of campus oriented.
Strategy as -- -- target is doing and they're actually providing bus shuttle service free bus shuttle services.
For 69 select campuses where that will take freshman directly to a target store.
So that they can shop and then they will deliver the product right back to the university so again.
I think really showing that retailers have to -- -- lots.
To get the consumer's dollar and -- they are willing to do it this this is brilliant part of man -- retailers I have to I mean I've you know I was in college I mean you should see you my parents sent it because I had everything my mother would be embarrassed to bite out of us to target to -- adding -- -- you know how stupid do you options -- refinements that.
China China that's that's actually really interesting let's just back to campus strategies that we were just talking about the -- of gas in OK so it's literally called back to camp back to campus and I think that's interesting is that.
We're seeing within retailers -- increasing understanding that it's not just K through twelve it's not just back to school there's this enormous opportunity for back to campus and like you said.
A lot of high price -- ideas because we're talking about a lot attack.
And then all of the dorm products and we're seeing a lot of retailers who really going after that in every -- sort of camping out in her dorm room.
I'm certainly a lot nicer than than what my dorm but -- yeah.
Yeah my dorm had several stated that we about the years after -- things for coming on thank you my Eleanor normative as always.
