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Families to spend more on back-to-school supplies this year

David Woodfill, Tribune

July 22, 2008 - 12:02PM , updated: July 22, 2008 - 6:49PM

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Retailers will compete for $51.4 billion in back-to-school spending this year as the average family plans to burn through the remainder of their federal stimulus checks, according to a new survey.

The Washington, D.C.-based National Retail Federation expects the typical family will spend more than $594 on school supplies for kindergarten through 12th grade, compared with about $563 last year. But spending among college students will drop 7 percent from about $642 per person last year to about $599 this year. Total sales for college supplies should reach $31.26 billion, the survey showed, while $20.1 billion will be spent by those with children in elementary, junior high and high schools.

The figures are based on a poll of 8,361 consumers, which was released Tuesday.

Retail experts called the bump in spending for noncollege students "surprisingly strong" given the state of the nation's economy.

"I don't think anybody really anticipated - given the economy - that consumers were going to say that they planned on spending a little bit more this year," said Kathy Grannis, an NRF spokeswoman.

One thing driving the increases is that, on average, families said they've socked away part of their federal economic stimulus checks, experts said.

Those predictions seem to jibe with a survey released in June by the International Council of Shopping Centers, a Washington, D.C.-based industry association. ICSC representatives said the checks weren't providing that much-needed economic jolt because people were opting to save the money thanks to high gasoline prices and uncertainty in the economy.

"Many families might have stashed some of that cash away specifically for back-to-school expenditures," Grannis said.

Teresa Klarfield of Scottsdale isn't one of them.

"That is long gone," she said of her stimulus check.

Klarfield has finished buying clothes for her two boys in high school, but she still hasn't bought things like paper, pens and books.

She said she has cut back her spending this year, buying only the bare essentials - "shorts, a couple of shirts and a pair of shoes" - for each, she said.

NRF said that retailers with strong promotions and "must-have brands" will have a better chance competing for back-to-school shoppers.

"With retailers starting back-to-school promotions earlier, parents are taking the opportunity to search longer for good bargains," the federation said in a statement.

Gia Wehus is the manager at the Anchor Blue clothing store at Fiesta Mall in Mesa. The store, whose customers are primarily teens and 20-somethings, is already preparing to do battle with other retailers in the mall.

Wehus said she spent Tuesday resetting the store's sales floor and will soon begin offering sales on a lot of merchandise.

Jay McIntosh, Ernst & Young's director of consumer products for the Americas, said he's surprised by the anticipated dip in spending among college students, noting that college lending and enrollments are very strong this year.

Tatum Smith, a sophomore majoring in nursing at Arizona State, said she's spending less this year. While shopping at Fiesta Mall on Tuesday with her mother, Patricia, she said she's not splurging on clothes and will instead stick to the basics.

"I normally would," she said, glancing at her mother's face and chuckling. "But probably not now, having to pay rent and gas."

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