Shoppers face a lot of economic headwinds this back-to-school season, but one forecaster has seasonal sales growing by 6.2% to $467 billion, the most since 2006.
That’s according to retail consultants Customer Growth Partners’ annual BTS forecast, which defies warnings of a double-dip recession and sees American households as being more resilient with their back-to-school spending during the July through September time frame.
“Navigating nimbly through the minefields of inflation, employment and housing woes, the 91% of Americans with jobs are much savvier shoppers than before the recession – and they are shopping again,” said CGP president Craig Johnson. “But for the long-term jobless, the triple whammy of food, fuel and now clothing inflation will make this summer another bummer.”
CGP’s 6.2% growth forecast marks the sharpest back-to-school retail growth since similarly strong 6.2% growth in the housing bubble economy of 2006. The 6.2% BTS 2011 growth tops even 2010’s strong 5.5% rebound from 2009’s abysmal 3.8% BTS decline.
What’s behind the stronger than expected Back-to-School season? CGP’s study points to several key drivers behind the robust outlook including, continued growth in disposable personal income that is 3% above last year’s level, healthier household finances with lower debt levels and a modest degree of private sector job growth.