The weather outside is frightfully hot, if anything, but that doesn’t mean local retailers aren’t decking the halls.
According to the National Retail Federation’s 2014 Back-to-School Survey, the average family with children in kindergarten–12th grade will spend 5 percent more on apparel, shoes, supplies and electronics – up to $669 this year.
Altec Computer Solutions owner Michael Van Matre said back-to-school sales in August are expected to rival December 2013 sales and far outpace the other months of the year.
“We usually order about three times our normal inventory. August is one of our busiest months,” Van Matre said. “It’s almost busier than Christmas. In some years, we have seen it do better than December.”
To boost incentives for back-to-school shoppers this year, he said Altec broadened the Aug. 1-3 state sales-tax holiday to cover everything in the store.
The tax holiday waives state sales taxes on certain back-to-school items, such as clothing, footwear, computers and traditional supplies, and Van Matre covered the local sales taxes for customers that weekend.
“If you’re buying a $500 to $700 laptop, the sales tax is quite a savings,” he said. “We gear up for this every year. We expect the volume to come in August.”
And this year, it has come.
Sales for this month’s tax-free weekend across the company’s two Springfield retail stores were up 30 percent compared to the same weekend last year, Van Matre said, declining to disclose sales totals.
“Laptops are always the biggest thing. Everybody needs a back-to-school laptop,” Van Matre said. “With the expiration of Windows XP and everyone having to switch to Windows 7 or Windows 8, I think that boosted sales because people felt forced to upgrade their machines.
“It should continue to help us throughout the year.”
Electronic sales are projected to rise 7 percent nationwide and total $8.4 billion this year, according to the NRF survey, which sampled 6,178 consumers July 1–8.
August feels like a holiday month for Jim Hoovens, co-owner of Wiseguys Screen Printing, because sales are up this year. He said monthly revenue was roughly $30,000 through Aug. 12, compared to $37,000 for the entire month last year.
He credits the uptick to an improving economy and increasing name recognition for the company born in late 2009 from the foreclosure of T.J. Sales Co. Inc.
“Gosh, I don’t know how many sorority rush orders we’ve done so far. There’s elementary schools, some Springfield, Willard and outlying area schools. When school’s back in session, we definitely see a bump,” Hoovens said.
Wiseguys Screen Printing doesn’t directly sell retail, but part of the improving sales picture is a rise in contract printing orders.
“You hear about the economy being not good, but I disagree,” Hoovens said. “I think people are spending. Obviously, we are seeing it here.”
While department and discount stores attract the most students and parents, the NRF survey said a record 53.8 percent of back-to-school shoppers will buy from a clothing store, up from 51.5 percent last year.
A trend toward specialty stores is good news for PFI Western Wear owner Randy Little.
Little said on Aug. 13 sales were up by more than 10 percent compared to the same time last year. He said mild weather and a heavy dose of Branson-bound traffic off of U.S. Highway 65 likely are driving the numbers.
For PFI, the back-to-school season kicks off its busiest season. He said September features a block party tied to PFI’s sponsorship of the annual Professional Bull Riders event in Springfield, and then focus turns with the leaves to Christmas.
While he declined to disclose revenues, he said August still pales in comparison to December.
NRF estimates bear that out. Total U.S. sales for the Christmas season last year were around $600 billion, compared to back-to-school sales this year at a projected $26.5 billion.
“Santa Claus only comes one time a year,” Little said. “We’re ending our 39th year, and I’ve been trying to get Santa to come twice a year, but I’ve never got him to do it yet.”
