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NPD: Last-minute back-to-school spending on the rise

BY Gail Hoffer

Port Washington, N.Y. — Once again, consumers are putting off back-to-school shopping until the last minute, but retailers can take solace in the fact that they intend to spend more this year.

According to NPD’s survey, 31% of respondents said they plan to spend more this year, compared with 22% who made that claim in 2011. The number of consumers who plan to spend less went from 38% in 2011 to 24% this year, while those who plan to spend the same rose from 40% to 46%.

When it comes to when they plan to shop, the numbers were essentially the same from 2011 to 2012. This year, 37% shoppers said they will finish their back-to-school shopping by Aug. 1 compared with 38% from the year before. This year, 58% of consumers plan to have their shopping done by Sept. 1, compared with 57% for the prior year.

“Retailers should plan to see a rise in sales when the temperature drops,” said Marshal Cohen, chief industry analyst, The NPD Group. “The summer heat wave in much of the country is a possible contributor to the delay in back-to-school shopping.”

Where consumers spend their money this year has shifted, with the bulk of the spending to be done at department stores (26% of those surveyed), followed by footwear specialty stores (25%) and online (16%).

“There will be waves of sales growth – in the early stages, school supplies and electronics will do well," said Cohen. "And when school is back in session apparel and footwear will show some true promise, driving shoppers to department, sporting goods, and specialty stores."

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azee1122 says:
Jan-09-2013 09:42 am

Thanks for the valuable
Thanks for the valuable information and insights you have so provided here... mahjong

azee1122 says:
Jan-09-2013 09:42 am

Thanks for the valuable information and insights you have so provided here... mahjong

J.Jay111 says:
Nov-03-2012 02:40 pm

I would like to thank you for
I would like to thank you for the efforts you have made in writing this article. I am hoping the same best work from you in the future as well. Thanks... machineasous-fr.net

J.Jay111 says:
Nov-03-2012 02:40 pm

I would like to thank you for the efforts you have made in writing this article. I am hoping the same best work from you in the future as well. Thanks... machineasous-fr.net

M.Manu says:
Jul-26-2012 09:11 am

US retail sector
Informative article. I work for McGladrey and there's a white paper on Retail on the website ( http://bit.ly/JDHmUU ) that describes current trends in US retail sector with insights from industry experts.

M.Manu says:
Jul-26-2012 09:11 am

Informative article. I work for McGladrey and there's a white paper on Retail on the website ( http://bit.ly/JDHmUU ) that describes current trends in US retail sector with insights from industry experts.

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OPERATIONS

Report: Best Buy pay consultant quits over retention bonuses

BY Katherine Boccaccio

Minneapolis — A Tuesday report by Bloomberg said that Best Buy compensation consultant Don Delves resigned after Best Buy awarded more than 100 managers retention bonuses that weren’t tied to performance.

Citing people familiar with the matter, Bloomberg reported that Delves – who is president of Chicago-based Delves Group and was retained by the Best Buy board — was strongly opposed to the payments. He has worked with the retailer’s compensation committee for seven years as an independent consultant.

CFO James Muehlbauer and U.S head Michael Vitelli are said to be among executives awarded extra pay as incentive to stay while Best Buy seeks a replacement for CEO Brian Dunn. Best Buy said the incentive pay is “intended to ensure leadership continuity,” according to an e-mailed statement to Bloomberg.

Muehlbauer and Vitelli, along with international president Shari Ballard and HR head Carol Surface, were in line to get lump-sum cash payments of $500,000 each. The executives also were to receive $2 million in restricted stock as part of the bonus plan. Planned bonus packages for more than 100 other Best Buy managers were structured similarly, said Bloomberg’s sources.

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FINANCE

Barnes & Noble CEO paid $10 million in 2011

BY Katherine Boccaccio

New York — Barnes & Noble CEO William Lynch was compensated $10 million in 2011, compared to $1.6 million in 2010, according to a report by the Associated Press.

The difference is due to a large stock option grant, reported AP, as Barnes & Noble compensated Lynch for expanding the retailer’s digital business. However, an SEC filing revealed the retailer planned to pay Lynch double the $5.3 million in stock options it granted, but found it couldn’t due to its 2009 incentive plan rules.

Lynch was paid a base salary of $1.1 million, up 22% from his base salary of $900,000 last year. He received a $450,000 bonus and other compensation of $32,750 for insurance and retirement payments, a car allowance and relocation costs. His stock awards were worth $3.1 million and stock options were worth $5.3 million.

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