Enticing shoppers requires learning what motivates them when they’re Back-to-School shopping. This year, by no surprise, “lowest price” is the overwhelming driver, with 76 percent of shoppers placing importance on value. However, secondary drivers paint an interesting picture of the differentiating shopping experiences retailers and brands can offer. 55 percent of shoppers also placed importance on “finding quality products” and “spending least time shopping.” While price is clearly important, more than half of shoppers won’t sacrifice a certain amount of convenience in order to provide their children with high-quality products. How can brands and retailers use this knowledge to adjust the value proposition they offer during these high-stress shopping seasons? For more Back-to-School data and behavior, click here to download the The Checkout - Issue 6.10.

1. the
inside the in-store experience
ISSUE 6.10 | BACK-TO-SCHOOL
IN THIS ISSUE
How Shoppers Grade Retailers on the
Back-to-School Shopping Experience
• Just 14 percent of those shopping for
Back-to-School items rate a “fun experience” as the
most important factor of the trip
• Grocery retailers receive an A+ from shoppers
on “saves me time shopping”
• Only 23 percent of students (grades 1—8)
are involved in the Back-to-School shopping process
This issue of The Checkout looks at the
Back-to-School shopping occasion and examines key
trip and purchase influences. Though the majority of
shoppers remain value-driven, there is an increasing
amount of importance placed on the overall shopping
experience in the store. Is there an opportunity for
retailers and brands to make Back-to-School shopping
more fun for both parents and students? What does
the future of Back-to-School shopping look like for
early birds versus last-minute shoppers?
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2. page
Report Cards Show GPA Across Channels
Can Fun Increase Channel
Frequency?
What drives a shopper’s decision regarding
where they will conduct the majority of their
Back-to-School shopping? Looking at the
three channels that rise to the top where the
majority of school-related products are
purchased (Office Supply, Mass/Discount,
page
and Grocery), it’s no surprise that there are
three distinct drivers behind those
predictions. Thirty percent of shoppers gave
Grocery an A+ on “saves me time
shopping;” 34 percent gave Mass/Discount
stores an A+ in “gives me the lowest prices;”
and Office Supply wins in “makes Back-to-
School shopping the most fun,” with 14
percent of shoppers giving the channel an
A+ in this area. While many retailers and
brands spend time focusing on the more
practical aspects of the value equation (time,
price, and quality), is there opportunity to
focus on experience as a point of differentia-
tion?
What is it about the Office Supply
channel that allows retailers to win in the “fun
arena”? Is it the products—markers and fun-
colored pads? Or has this channel created a
unique in-store shopping experience that is
entertaining for shoppers? Whatever the reason,
Office Supply retailers seem to have figured out
a way to differentiate themselves via a unique
value proposition.
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3. page
Advantage for Early-Bird Shoppers?
Preparedness vs. Last-Minute
Shopping. Who Wins?
While shoppers may start planning early for
Back-to-School shopping, with more than
48 percent of shoppers planning a month or
more before the start of the school year (see
column A in Graphic 3), when it comes time
for those same shoppers to do the actual
shopping, the vast majority, 70 percent, do
their shopping less than three weeks before
school starts (see column B Graphic 3). And
whether it’s due to Mom’s busy schedule or
the rough transition from summer vacation to
the Back-to-School mindset, there are many
last-minute shopping instances. One in three
people shop a week before school, or even
after school starts. So while we see retailers
gearing up for Back-to-School directly
following the 4th of July holiday, we must
better understand which shoppers are ready for trips
that early—and create stronger reasons for them to buy sooner.
Enticing shoppers requires learning what
motivates them when they’re Back-to-School
shopping. This year, by no surprise,
“lowest price” is the overwhelming driver, with
76 percent of shoppers placing importance
on value. However, secondary drivers paint
an interesting picture of the differentiating
shopping experiences retailers and brands
can offer. Fifty-five percent of shoppers also
placed importance on “finding quality
products” and “spending least time
shopping.” While price is clearly important,
more than half of shoppers won’t sacrifice a
certain amount of convenience and providing
their children with quality products. How can
brands and retailers use this knowledge to
adjust the value proposition they offer during
these higher-stress times of year?

4. page
Little Student Participation During
Back-to-School Shopping.
Many Students Are Not Along for the
Ride.
Given the nature of the time period, the
focus of messaging typically hinges on the
student. But only a small percentage of
students are likely to be involved in
Back-to-School shopping this year. For
brands and retailers, this may mean
reevaluating who they are talking to in the
store. If only parents or other adult family
members are involved in the shopping
process, perhaps messaging should focus
more on different aspects of value versus
leveraging tactics that are more intended
to entice students (e.g. a
sweepstakes hinging on winning the latest
game console).
Recession Recess?
Despite the ongoing reports of the economic
downturn, signs may point to recession relief
in August 2010. Thirty-eight percent of
shoppers expect to purchase fewer
inexpensive items this year, which is a
significant decrease from the 54 percent who
reported this last year. Not only are they
expecting to purchase fewer inexpensive
items, but also there is an increase, from 2
percent to 14 percent in those who expect to
buy more items, and more expensive items.
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5. page
In-Store and Direct Marketing to Save Money.
Shoppers Look to Direct Communication for Back-to-School Preparation.
When it comes to information sources for Back-to-School shopping, directive and tangible
communications are the most effective. Knowing that these are the primary tools driving purchase means
that shoppers are looking for more local and relevant forms of communication (e.g., school lists). And
the more direct and relevant the form, the
more influential it is. Given this, retailers
and brands may need to focus less on
mass-marketing efforts and more on
personalized messaging and promotions.
What This All Means
Back-to-School is the second largest
shopping season of the year, and often
considered an indicator for Holiday
spending. So, during this key period, the
need to differentiate and provide shoppers
with a relevant value proposition is critical
to not missing opportunities at the register.
Awash in a sea of seemingly similar retail
value plays, shopper disruption in-store
hinges on more than just lowering prices
for the “best deals of the season.” Retailer
and brand strategies must deliver not only
on price, quality and convenience, but
wrap those up into a brand-distinguishing
proposition. Part of this strategy is to
understand the audience: shopper or consumer, Mom or child? Back-to-School may appear student-
focused, but knowing that many students aren’t along for the shopping trip, Mom becomes the
decision-maker behind the steering wheel and behind the shopping cart. So just how much influence do
children have on what goes on the Back-to-School list? Is there a beneficial balance to be found in cater-
ing to the needs of both Mom and student? Or should the retailer focus on providing Mom with a relevant
value proposition that becomes a future driver for return visits in the store?
Issue 6.10 powered by The Integer Group ® and M/A/R/C ® Research

6. pag e
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