It may be freezing outside and Valentine merchandise is arriving in stores, but so are back-to-school (BTS) customers.
There is a second season for pens, pencils, notebooks and other items needed by the 55 million students attending schools in the U.S. who are in need of fresh supplies. This is also the season when science fairs kick into gear sending many would-be Einsteins to the office supply shelves. As an added benefit, the stationery department also serves tax season needs as consumers gear up for April 15.
However, one industry observer notes that retailers, dazzled by the opportunities of Valentines, frequently overlook the potential of BTS II and offer little in the way of seasonal promotion, display or excitement.
They could be wrong. According to Dean Erlandson, vice president U.S. sales for Crayola, the BTS II period runs from January 15 to March 15. Although office supply stores get the lion's share of sales -- food, drug and mass marketers have been gaining volume as they enlarge sections. "All three together [back to school, office supplies and science fairs] make it a very lucrative season for those that play hard," said Mr. Erlandson.
Total BTS continues to be a bigger and bigger business for mass marketers. According to the National Retail Federation, spending in 2006 rose from the year before with the average family shelling out $527.08, up from $443.77 in 2005. It is estimated the sequel season accounts for about 25 percent of that total.
According to more than 500 mothers of grade-school aged children surveyed by Parenting magazine's Mom Connection and Elmer's Products, Inc., there are more items on children's lists than ever before. Over half of moms reported needing to buy twice as many supplies as when they were kids, with items that didn't even exist years ago such as hand sanitizers, computer supplies, highlighters and colored pencils.
Of course there are standbys that must be featured in the mix such as white school glue, which scored toward the top of the list, and even brand names such as Elmer's make moms feel nostalgic for their own days of schools.
Discussion Questions: Is BTS II big enough to become a seasonal event for mass market retailers, or will it just erode Valentine's Day? How and where in the store should this seasonal opportunity be handled? If it becomes part of food and drug retailers' overall seasonal program, would it provide leverage versus the office supplies stores and big mass merchants?