HIGHLAND LAKES — While local retailers and businesses are already preparing big back-to-school sales, concerns about the timing of a sales-tax-free retail weekend are troubling some merchants.
“Really and truly, back to school to me is the biggest time of the year,” said Rosemary Dowdy, store manager for Bealls, 1505 RR 1431 in Marble Falls. “In our retail it does more business than Christmas.”
However, classes at many campuses start Aug. 23, and the state-sponsored sales-tax-free weekend — which allows merchants to sell school supplies and clothes without charging a tax— is Aug. 20-22.
With the economy struggling this year, Dowdy said many people aren't waiting to purchase back-to-school items, but are buying them as money becomes available.
This means they may not wait until the state tax-free weekend.
“It does worry me that (the tax-free weekend) is so late because I’m not sure if people will turn out as strong as they have in past years,” Dowdy said. “That weekend is usually very big for us. So until everything is done and I get a chance to look at the numbers, I won’t know for sure how it affected our sales.”
Her worries are understandable, according to the National Retail Federation.
NRF officials said the timing of the tax-free weekend doesn’t fall in line with most consumer activity when it comes to back-to-school shopping. Almost half of the back-to-school shoppers begin three weeks to one month from the first day of school with about a quarter waiting until two weeks out.
And like the holiday rush, some consumers get a jump on the event by shopping as much as two months in advance.
Yet back-to-school sales still mean big business, say local merchants. With about 8,400 elementary through high school students living in the Highland Lakes, that’s a major demographic.
In fact, despite recent nationwide economic woes, experts expect back-to-school spending to be up this year. According to the NRF's 2010 Consumer Intentions and Actions Back to School survey, the average American family will spend almost $60 more per child this year on school items compared to last year.
The research showed families will spend on average $606.40 per child on items such as clothes, shoes, school supplies and electronics.
The average per-child spending was $548.72 last year.
Officials with the NRF expect that nationwide the back-to-school retail boon will reach $21.35 billion for elementary through secondary students. When college students are tossed into the mix, the number jumps to more than $55 billion.
“We’re encouraged by the fact that parents are eager to start their back-to-school shopping this year, but the industry still remains cautiously optimistic about recovery,” said NRF president and Chief Executive Officer Matt Shay. “As the second half of the year gets under way, retailers will gauge their customers’ spending appetites, which often serve as a bellwether for the all-important holiday season.”
Dowdy, however, isn’t too concerned with the post-Thanksgiving rush right now but sees this as Christmas in August.
“The back-to-school season has already started,” she said. “We’re already seeing people come in (during July) and shop for school. Which is a little earlier than some years.”
Consumers have plenty of choices this year, too.
Local retailers aren’t just competing against each other or even stores in Austin; the NRF said they find themselves stacked up against the big online sellers as well. Even those who normally don't buy online may look for comparative pricing via the Internet.
“Many of today’s shoppers are smarter than any other generation before them, especially when it comes to finding the best price,” said Phil Rist, executive vice president of strategic initiatives for BIGresearch, which conducts consumer and retailer research. “The affordability of online shopping gives parents an extra edge over the sometimes expensive back-to-school shopping season with price comparison options, free shipping offers and even coupons.”
With so many choices, local retailers such as Bealls know they have to be proactive when it comes to getting people through the front doors.
Dowdy said Bealls has a very active approach to attracting and keeping customers.
“Right now we’re handing out coupon books to customers,” she said. “And we have online coupons and are doing other things to keep our loyal customers.”
Yet while many retailers are gearing up for the big back-to-school push, some see the first day of school as a time to catch their breath.
Terry Petrich of Terry’s Tees, 1002 N. Water St. (also U.S. 281) in Burnet, said despite having a store with green-and-white clothing lettered with “Bulldogs,” “Burnet” and “BHS” (Burnet High School), he doesn’t experience much in the way of back-to-school rushes.
“When school starts we can slow down a bit,” he said. Though it sounds counterintuitive with so many “school pride” items on the floor, Petrich’s T-shirt and clothing printing business has closer ties to summer camp than football pride.
“Camp Longhorn makes up about 75 percent of our business,” he said. “We print all their T-shirts and uniforms. So when the camp season ends, it slows down a bit for us.”
Plus, he said, with so many other retailers such as Walgreens and H-E-B selling Burnet memorabilia, it’s just hard to exclusively focus on that market.
While the obvious focus of the back-to-school rush is retail, other local businesses also experience an increase in activity thanks to the first day of class.
“Oh yeah, we definitely see more students in class,” said Daniel Adams, owner of Peaceful Warrior Martial Arts in Marble Falls. “When school starts, parents and kids are getting back in a routine. So our classes double or triple.”
The martial-arts classes teach more than self-defense — discipline also focuses on getting homework done and developing character, Adams said.
“It does slow down for us in the summer,” he said. “So we’re looking forward to school starting again in August. It’s good for us.”
