Back to School Gets Mixed Grades
The next big season mass retailers will watch to determine if the country’s economy is starting to thaw is back-to-school. For many, the season has started already. Truth be told, even the holiday selling period has commenced at many retailers such as Kmart, where Christmas promotions started in July.
Two different thoughts and research to back those theories are in play. One is that consumers are pulling way back for this school season. Another survey, however, finds people ready to loosen their grip on the purse strings.
The truth probably rests somewhere in between, but retailers can do more to attract consumers during the upcoming seasonal events. Research from the National Retail Federation and BIG Research shows more consumers plan to buy only what they need while also looking for more coupons.
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According to the NRF’s 2009 Back-to-School Consumer Intentions and Actions Survey, the average family with students in grades kindergarten through 12 is expected to spend $548.72 on school merchandise, a decline of 7.7 percent from $594.24 in 2008. Total spending on b-t-s is expected to reach $17.42 billion. There’s no arguing beauty is a small portion of that. But, most teen girls will want at least a new lip gloss and eye shadow as they head back to school.
Rite Aid has jumped onto the consumer need for value by offering a wide selection of value-priced private brand b-t-s products and a series of b-t-s savings programs, including more than $200 worth of school supply rebates. “In times like these, we know many families are going to be watching their monthly budgets,” said Greg Axtman, Rite Aid category manager. Another study paints a brighter picture and suggests people have pent-up demand. The NPD Group found in a study released last month that more women are buying beauty to feel better about themselves. And fewer women are reporting that beauty products are at the top of the “cut list,” even in tough economic times. In April, only 42 percent said they would cut back spending on beauty before other items, versus 45 percent in November.
“It is very encouraging to see the overall positive shift among beauty shoppers. That tells us that, while we are not out of the woods yet, the greater proportion of beauty consumers are willing to explore spending again,” said Karen Grant, senior global industry analyst and vice president of beauty. “Beauty being so directly tied to a woman feeling better about herself is a vital trigger that cannot be missed in the marketing of beauty products today,” said Grant.
The message from both studies is that retailers who offer cool values for b-t-s could just entice the shoppers who have held off on a new mascara or lipstick who are preparing for fall.
People, Places and Things
A few words with Tova Borgnine as she readies more scents for QVC. Borgnine just can’t sit back and watch her original scents fly. She’s readying a follow-up to her 27-year-old Signature fragrance and adding another seasonal scent. WWDBeautyNews caught up with her at lunch this week.
WWDBeautyNews: So what’s next for Tova?
Tova Borgnine: We are launching our Signature Platinum. Signature has been out for 27 years and we thought it was time to take it to an even higher level of premium ingredients. Platinum has the heart of Signature with the best of the best of all the ingredients. For example, the very heart of Signature is musk, and I have introduced a new and higher level of musk resulting in a deeper, richer fragrance that lasts longer than the original.
WWDBeautyNews: Do you ever fear you can launch too many scents?
T.B.: If I stuck with a business school theory…yes. But I go with my instincts and each fragrance has been a success without detracting from the others. We, in fact, have autumn planned.
What’s in Store
Maybelline is featured at Rite Aid: Rite Aid and Maybelline hosted an event at Grand Central for the launch of Maybelline New York’s Color Sensational Lipcolor. Visitors got professional makeup advice from artists and enjoyed a performance by the cast of “Chicago.”
Ricky’s expands: Think there aren’t strong regional players left in mass beauty? Think again. Ricky’s will open its 22nd store in September.