Moody’s takes a look at how retail back to school (and back to college) sales promotions are driven by consumer electronics like computers, tablets, and iPods.
Read the excerpt:
“Those who sell lower-ticket merchandise will benefit to a lesser extent, including department stores focused on bedding and apparel and specialty retailers such as Bed Bath & Beyond Inc. (unrated). The office supply stores will also benefit to some extent, though not as much as they will from their more traditional niche in back-to-school items such as notebooks, pens and backpacks for elementary and high school students.
There are more than twice as many students in elementary and secondary schools as there are in college, according to the US Department of Education. Even so, bigger-ticket items such as electronics and furniture help offset the lower volume for back-to-college retailers, with freshman spending leading the way. And though there is presently some slowing in college enrollment, back-to-college is still growing, with the Education Department forecasting that enrollment in post-secondary institutions will exceed 24 million students by 2021, up from about 21 million now.”
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