The total back-to-school market in the US is worth $72.53 billion, with traditional school supplies accounting for $7.24 billion and electronics such as PCs and tablets worth $19.5 billion. While US back-to-school retail sales hit $30.3 billion last year, they declined to $26.7 billion this year, though households still spent an average of $634. Online shopping is becoming increasingly popular, with online sales growing 18% in the UK. Manufacturers and retailers will need new strategies to attract bargain-conscious customers and compete in the growing online market.

1. by Niall Hunt
niall.hunt@opi.net
THE total back-to-school (BTS)
and back-to-college market
is worth $72.53 billion in the US alone.
Of this, traditional school supplies,
such as notebooks, folders and
pens, account for $7.24 billion while
electronics, including PCs and tablets,
are worth $19.5 billion.
Last year, US BTS retail sales hit
$30.3 billion and while the National
Retail Federation (NRF) reports this
year’s sales to be down sharply to $26.7
billion, each US household still spent an
average of $634 on BTS this season.
And the 2013 BTS market in the
UK was at least as buoyant. Figures
from GfK for July-August show the UK
stationery market up 3.5% by value.
GfK says this growth continued into
September, producing overall value
growth in the BTS 2013 period of 4.5%,
driven by sales at grocery
chains which saw a value
uplift of 4.6%. By volume, however, the
market declined 7.9%.
In the US, figures from the NPD
Weekly Retail Tracking Service show
total BTS spending down 1.9% on last
year at $3.39 billion for the 13 weeks to
5 October.
The biggest fall, according to
research firm NPD, was at office
superstores, with a 3.9% sales decline.
Other retail stores’ sales slid 1.6%.
NPD Office Supplies President Lora
Morsovillo says: “One bright spot was
e-commerce [up 6.2% by value], but it’s
such a small piece of the overall pie.”
The OP superstores’ market share
also declined, according to NPD, with
their slice standing at 30.2% this year
on 30.8% last year. But it is a piece of
pie that is still worth $1.02 billion.
“We saw a lot of activity
in the office superstores to
differentiate their offerings,”
says Morsovillo, “particularly
celebrity endorsements”.
However, she adds that
choosing the right celebrity
was a tricky balancing act.
“There have been mixed
successes on sell-through
and it’s really striking when a
product’s hot.”
In the UK, GfK figures show
that writing instruments
were strong in both retail and the
business channels, with value growth
of 3.9% and 5.7% respectively.
Branded products were instrumental,
according to GfK, showing a value uplift
of 11%, while own labels fell 11%.
Pentel Marketing Manager Wendy
Vickery confirms this, saying demand
for Pentel’s EnerGel range of markers
has been “record-breaking” this year.
And the US was no different.
“Brands do well because of quality
perceptions. We also saw growth
in areas that focus on fashion with
patterns and colours playing an
important role,” adds Morsovillo.
Vickery comments: “Some of the
biggest consumers of stationery and
trendsetters are teenage girls and violet
is extremely popular with this audience.
We’re seeing sales of violet ink pens
becoming as popular as blue now. “
“Consumers are still looking to
get value for money,” adds Vickery.
“This has always been the case at
back-to-school time, regardless of
current strains on the household
budget. Value, however, doesn’t
necessarily mean always choosing the
cheapest product.”
University challenged
Back-to-college spending in the US
is also down. “The good news is that
consumers are spending, but they are
Under
examination
The back-to-school season is a
busy period for the OP industry,
but striking the right balance of
offers and marketing is crucial to
ensuring success
“Some of the biggest consumers of stationery and
trendsetters are teenage girls”
■ Catalogue 8%
■ Thrift stores/resale shops 14%
■ Drugstore 20%
■ Electronics store 26%
■ Online 37%
■ Office supplies store 41%
■ Clothing store 51%
■ Department store 62%
■ Discount store 67%
Where will you purchase back-to-school
items this year?
Source: NRF Monthly Consumer Survey
www.opi.net | OPI Magazine 49
Back-to-school | Category Analysis

2. doing so with cost and practicality in
mind. Having splurged on their growing
children’s needs last year, parents will
ask their kids to reuse what they can
for the upcoming school season,” NRF
President/CEO Matthew Shay said in
response to this year’s figures.
Last year’s US BTS and BTC sales were
driven, in part, by growing demand
for tablet devices and PCs, according
to the NRF. The organisation estimates
that $8.38 billion was spent on BTC
electronics this July, down 12.6% from
$9.59 billion in July 2012.
IDC and Gartner also both reported
a decline in PC sales during the BTS
season this year. And, while Apple sold
14.6 million iPads in Q3 2013, unit sales
were down 14.1% this year.
Despite this, NPD’s Morsovillo says:
“What consumers have told us is that,
while overall there was no growth in
those products this year, if you break it
down by age group, middle school and
also junior high school did see a little
bit of growth.”
Marketing class
Experian Marketing Services Head of
Global Research Bill Tancer says that
BTS marketing started much earlier this
year, with some campaigns kicking off
as early as May. But, he says, this doesn’t
mean shoppers started buying earlier.
“Shoppers are delaying their
purchases till later in the season,
even beyond the Labor Day weekend.
Students, for example, want to wait to
see what the other kids are wearing
before buying,” he says.
Morsovillo says that retailers in the
US started marketing BTS earlier two or
three years ago. However, she adds: “A
good proportion of the US had a very
late start to summer climate-wise. And
people just weren’t shopping for these
products until the end of July. So stores
weren’t seeing as much traffic as usual.”
Vickery meanwhile points out that
marketing is crucial to shoppers’
decision-making process. “Pentel
has had a successful back-to-school
promotion with a particularly attractive
selection of offers on key products, with
a strong range of consumer offers.”
She adds that while
convenience is an important
factor in where consumers
shop, it also “varies
enormously according to
demographic factors”.
“Students requiring
specific products for
university courses will
be more likely to visit a
specialist stationer or
out-of-town retailer to find
what they’re looking for,
whereas parents of young
children may be more
inclined to incorporate their
back-to-school purchasing
within their weekly shop
in the supermarket or high
street,” she says.
“What all of them have
in common,” she adds, “is
increasing use of the internet
to make their back-to-school
purchasing selections.”
In the UK, online saw value growth
of 18%, according to GfK, whereas
traditional in-store sales only grew 3%.
“Online is the area experiencing the
most growth for our customers, due to
the convenience and choice offered by
this channel,” GfK Account Manager –
Office/Stationery Panel Sarah Wheeler
explains. “With online sales flourishing
for stationery products in BTS 2013, this
is an important area to target customers
driven by the digitisation in consumer
purchasing habits,” says Wheeler.
But online is not growing as strongly
in the US. “I think with e-commerce,
we have seen steady growth in the US,”
comments Morsovillo. “But that’s not
isolated to the BTS season. There is
definitely room for growth.”
Despite this, the NRF’s 2013 BTS
survey shows that more US consumers
are turning to the internet to save
money, with 36.6% saying they will do
more price comparison online.
All channels remain important to
Pentel, comments Vickery: “The high
street contains many of the traditional
destination stores for BTS purchases,
while the independents offer the range
of choice that consumers requiring
specialist products are seeking. We
ensure that we have a credible BTS
solution for each channel.”
Wheeler says: “BTS has seen good
growth over 2013, where brands have
been the key contributor. Looking
forward to 2014, if this growth is to
continue manufacturers and retailers
need to look at gaps to expand.”
“I think it’s having the right selection
of products, the right quality of
products and having them at a good
deal and offer value,” adds Morsovillo.
“The opportunities for Pentel are
to bring innovative products to the
market and explore opportunities with
non-traditional routes to market, such
as the internet and value retailers,”
says Vickers.
As the OP industry in the northern
hemisphere focuses on next year,
it must be ready to embrace a more
bargain-savvy set of customers. And,
while the internet was an important
channel this year, its growth looks likely
to dominate next year’s BTS season, in
the UK at least.
Manufacturers and resellers will also
need to get their marketing right in
the battle for brand dominance in the
minds of consumers.
At the more globally focused brands
and resellers meanwhile, thoughts
will be turning to the start of the
back-to-school season in the southern
hemisphere, where marketing efforts
will have already begun.
Ballpoints +5%
whereas parents of young
children may be more
inclined to incorporate their
back-to-school purchasing
within their weekly shop
in the supermarket or high
Ballpoints +5%Ballpoints +5%Ballpoints +5%
Colouring
pencils +11%
Colouring
specialist products are seeking. We
ensure that we have a credible BTS
pencils +11%
Colouring
pencils +11%
Colouring
Fountain pens +15%
Ballpoints +5%Ballpoints +5%Ballpoints +5%Ballpoints +5%
Colouring
pencils +11%
Writing felt pens +11%
Key areas for UK
grocery growth
“What all of them have in common is increasing use of
the internet to make their BTS purchasing selections”
OPI Magazine | November 201350
Category Analysis | Back-to-school