As of early July, 55% of back-to-school and college shoppers have already started their purchases. How does this affect the industry as a whole?
Last week, we focused on the furniture and mattress industries performance in June. Join us as we look at the bigger picture and see how the rest of the industry faired over the month of June.
Today’s Rundown
- OUT NOW: Sign up to receive the Q2 2024 Home Furnishing Benchmark Report.
- Back to school: Parents to spend nearly 22% more on back-to-school shopping this year.
- The Future Of Retail: Trends to watch in the second half of 2024.
Market Watch
Furniture Industry
Mattress Industry
Q2 Benchmark Report
We are pleased to release our latest quarterly Benchmark report! Dive into the numbers and see how your store compared to the industry average over the last 3 months.
Back to School Chaos
As of early July, 55% of back-to-school and college shoppers have already started their purchases, according to a survey by the National Retail Federation and Prosper Insights & Analytics.
Despite this early start, 86% of consumers still have at least half of their shopping left, primarily waiting for the best deals or finalizing their needs. Retailers are meeting this demand with summer sales events. On average, families with school-age children plan to spend $874.68 on supplies, slightly less than last year’s record but still the second-highest in survey history. Total spending is expected to reach $38.8 billion.
Last year’s high spending on back-to-school items was driven by a surge in electronics purchases, with 69% of shoppers buying laptops, tablets, or other devices. This year, interest in electronics has decreased, with K-12 shoppers budgeting an average of $309.35 for electronics. They also plan to spend $253.29 on clothing, $141.62 on school supplies, and $170.43 on shoes.
Popular shopping destinations include online stores, department stores, discount stores, clothing stores, and electronics stores. College students and their families are expected to spend an average of $1,364.75, nearly matching last year’s record, with total back-to-college spending projected at $86.6 billion.
Beyond Home Furnishing: June Sales
Last week, we analyzed the performance of the furniture and mattress sector for June. Now, let’s zoom out and explore how the entire industry fared.
Data from the U.S. Census Bureau shows modest retail sales gains in June despite uneven spending patterns.
Overall retail sales were flat month-over-month but increased 2.3% year-over-year, compared to May’s 0.3% monthly and 2.6% yearly increases. Core retail sales, excluding autos, gas, and restaurants, rose 0.9% month-over-month and 1.3% year-over-year.
For the first half of the year, core retail sales were up 3.2% annually, aligning with the forecast of 2.5%-3.5% growth for 2024. Going forward, spending trends are expected to continue despite potential slowdowns in employment, income growth, and high interest rates.
Retail Snippets
Survey: Top trends to watch in the second half of 2024.
Prime Day: Amazon Prime Day first day sales reach $7.2 billion amid back-to-school leap.
Report: US online retail sales to reach $1.2 trillion this year.
Random Irrelevance
Mapped: Portland International Airport reveals opening day for redesigned terminal.
Must See: Rite Aid says breach exposes sensitive details of 2.2 million customers.
Check again: Target will stop accepting this old-school form of payment.
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