Seasonal Store Check: Back-to-School 2009

While consumer surveys forecast a decline in seasonal spending, leading retailers put savings messages and promotional pricing at the forefront of their 2009 back-to-school marketing activity.The National Retail Federation's 2009 "Back to School Consumer Intentions and Actions" survey, conducted by BIGresearch, predicted that the average family with students in kindergarten through high school will spend $548.72 on supplies, apparel and other relevant purchases this season. That's down 7.7%, or roughly $45, compared with 2008, and implies an overall sales decline of more than $4 billion industry-wide.When Bed Bath & Beyond reprised its annual "Equip Your Space" campaign in mid-May, it looked as if the recession would inspire retailers to conduct the earliest -- and therefore, longest -- back-to-school season in recent memory. However, most retailers waited until July -- or later -- to fully launch their campaigns.While promotional prices may have been lower than in 2008, this season's marketing activity was quite similar to last year, as many top retailers staged campaigns that either were similar to their 2008 efforts or copied them exactly. Among the repeats: Walmart reprised its "Do the Math and Save" theme, using the slogan on signs and displays merchandising a variety of products. Among its low-price communications, the chain made a lot of noise about products for $9. Exclusive apparel received top billing in advertising and stores, early in the season with Iconix's OP and later with the launch of the Miley Cyrus Max Azria line. Kmart mimicked last year's "Rock Your Style" theme with a "Ready to Rock" campaign that played out on endcaps, pallet displays and gondolas. The chain also conducted a "Schoolebrity" sweepstakes with Viacom's Nickelodeon and partnered with Walt Disney Co. to offer licensed supplies. Sister chain Sears, meanwhile, revived its "Don't Just Go Back, Arrive" campaign, even arranging for another Disney Channel starlet (Selena Gomez) to serve as spokesperson. OfficeMax repeated its "Penny" promotions in a "Back to School for Pennies" effort featuring one-cent offers communicated via shelf tags and circular features. The campaign also included a cross-promotion with Payless ShoeSource. The Sports Authority used its now-annual "Back-2-Sports" theme, which is used on shelf signs and floorstands merchandising apparel and backpacks. Toys "R" Us again converted its upfront seasonal department into a "Back-2-Cool" section and, like last year, offered a free lunch kit with backpack purchase. Family Dollar restaged an essay contest -- complete with 3M's Scotch-Brite and Clorox Co.'s Pine-Sol returning as sponsors -- asking entrants to describe how higher education can make a difference in their lives. The "Powerful Difference" contest awards two grand prizes of $25,000 scholarships and 20 first-place $2,500 scholarships. Entry is online from Aug. 1 through Sept. 30. The chain also distributed a seasonal circular. Safeway is hosting its annual "10% Back to Schools" program, which donates 10% from eligible purchases to a school designated by the shopper. Shelf tags mark participating SKUs from Aug. 13 through Sept. 16. Stores also showcased pallet displays from office supply partner OfficeMax. Among activity at other retailers:Mass MerchantsTarget reached out to college-bound students with a "Prep 4 Less" campaign, targeted high-schoolers with a "Teen Central" theme, and went after younger students with a line of supplies designed by artist Simone Legno.Meijer sought to appeal to budget-conscious mothers with a "Mom Approved" theme used on various signs and displays. The chain also executed such tried and true tactics as a seasonal sweeps and cross-departmental incentives.SupermarketsA&P put a sustainable spin on its activity, spotlighting private-label Green Way notebooks, paper, backpacks and laundry bags while advising students to "go green in the classroom."Ahold USA's chains (Stop & Shop, Giant-Carlisle and Giant-Landover) filled the seasonal aisle and some upfront locations with displays from their stationery partner, Staples. (The relationship also includes former Ahold chain Tops in Western New York.)Kroger billed itself as the "right store for back to school" in circulars featuring sales on such brands as Crayola and Bic. It also suggested that shoppers "start the year off right" by purchasing gift cards to various retailers including Best Buy and Staples. Among chain-specific activity, Fry's supported a promotional campaign from Nestle asking "What's in Your Lunch?" on displays and in circular features.Kroger's Fred Meyer promoted a "Kids In Need" program awarding grants of $100 to $500 to teachers who devise educational projects that "engage students in hands-on activities that lead to new knowledge, awareness, or self-discovery." The grants are sponsored by the Kids in Need Foundation and the Fred Meyer Fund. The application process runs through Sept. 30.H-E-B borrowed from Walmart's playbook by inviting shoppers to "Do the Math and Save" on assorted school supplies. Pallet displays merchandised various seasonal products.Publix used exclusive promotions from Kraft, Campbell Soup, Unilever and General Mills to liven up its efforts, which included themed spectaculars and dedicated gondolas.ShopRite also went the partnership route, supporting "The Big Clip" Box Tops for Education sweeps from General Mills and a school-themed promotion from Kellogg offering a "Family Fun Photo Calendar" with purchase of four eligible products. The calendar contains incentive offers dangling $75 worth of debit cards.Supervalu chains including Acme and Jewel-Osco offered "10 for $10" deals on school SKUs from 3M's Scotch, Elmer's, Crayola, and Sanford's Paper Mate. Much of Jewel-Osco's Aug. 9 circular was dedicated to back-to-school, with colored pencils bordering most pages. The Chicago-area chain also tapped into Kellogg's "Fuel for School" program by requiring that shoppers use their loyalty card to qualify for the packaged-goods maker's $10 rebate.Winn-Dixie distributed a 12-page catalog featuring school supplies -- sans prices -- from the chain's private label and various national brands.Whole Foods rolled out displays merchandising healthy food options for children's lunches alongside signs calling for a "School Lunch Revolution." The chain supported the effort on its website with lunch ideas and recipes from chef and author Ann Cooper, and advice on how consumers can get their local schools to serve more nutritious meals.DrugstoresWalgreens began running back-to-school features in circulars on July 26. In stores, the seasonal aisle employed purple shelf trays to identify related merchandise, which also was promoted on power wings in multiple departments. Stores also distributed a special coupon book containing $50 in savings on products from such manufacturers as Kraft, Wm. Wrigley Jr. Co. and Kimberly-Clark, and dropped a direct-mail piece in late July carrying $65 in coupons; special promotions promised $5 off a general $25 purchase and a free 32-ounce bottle of PepsiCo's Gatorade with purchase of five SKUs.CVS/pharmacy's July and August circulars touted three-day sales events. In stores, ceiling signs trumpeted "Back to School Savings" above school-bus yellow shelf trays for private label and national brand supplies such as Elmer's glue, Sanford Corp.'s Sharpie and 3M's Post-It. Sales included multiple Extra Bucks promotions for relevant brands, including Pilot, Acco Brands' Swingline, Mead's Five Star and Paper Mate.Rite Aid targets teen girls with its periodic Glam Camp program (see "Rite Aid, Hershey ..." in Related Articles), which this flight offers a free bag of beauty-product samples with purchase of three participating items. Brand sponsors include L'Oreal's Maybelline and Reckitt Benckiser's Clearasil and Veet. In-store makeovers and sampling events support, as do circular features and ads in the chain's August "Single Check Rebates" catalog (which offered "$209 in back-to-school savings"). Elsewhere, circular features and in-store signs advise shoppers to "Go back big."Dollar StoresDollar General offered savings of 50% on such back-to-school staples as filler paper, notebooks, portfolios and crayons in weekly co-op FSI events, while the chain's circular features in July and August offered sales on supplies and apparel. The chain's website offers downloadable supply lists, study tips for students and a "lunchbox cheat sheet" for parents presented by Kraft.Office SupplyStaples formulated a "Staples=Savings" campaign dangling discounts on "250 core back-to-school items." The chain also enlisted singer Ciara as spokesperson for a reprise of its partnership with non-profit organization Do Something.Office Depot fronted its seasonal efforts with a "Go Back Smarter" campaign and cross-promotions with Foot Locker and Dunkin' Donuts.Department StoresJCPenney hosted a "Schooled in Style" campaign that highlighted back-to-school apparel and accessories from national and private-label brands. The retailer also introduced four product lines in the young men's and boys' departments. Seasonal private-label brand Dorm Life, which encompasses bedding, window furnishings, decor and bathroom accessories, was merchandised on floorstands and vignettes in various departments.In keeping with its recent value-themed seasonal slogans, Kohl's employed a "Get the Look, Love the Savings" phrase on rack headers and floorstands throughout stores. A "Student Lounge" in the seasonal department stocked relevant products from the bed and bath, personal care, kitchen and dining, floor care, furniture, decor, storage, electronics and games categories. Some displays carried a back-to-college "TO DOrm" checklist. Meanwhile, circulars seasonally tweaked Kohls' latest tagline to make it, "The more you know your kid, the more you Kohl's."Macy's reran its annual "Book a Brighter Future" campaign with non-profit organization Reading is Fundamental. In the juniors' and young men's departments, signs near denim displays employed the slogan, "Social Trends. Look who's into the Blues."Consumer ElectronicsBest Buy enlisted manufacturers HP, Toshiba, Sony and Dell to produce an exclusive line of computers under a "Next Class" label, part of the Blue Label Series the chain launched in October 2008. (See "Best Buy Co-Opts ..." in Related Articles.) The line was promoted on ceiling banners, door clings and stanchion signs.BookstoresBarnes & Noble recruited students from the Savannah School of Art and Design and the Pratt Institute to design notebooks, pencil cases and messenger bags for its back-to-school lineup.Borders put backpacks, dictionaries, grammar books, test prep books and other relevant categories on table displays.SpecialtyLater in the season, Bed Bath & Beyond added a "Students of Invention" contest and a MasterCard sweeps to its back-to-school activity.The Gap hosted a "Leader of the Packs" sale offering a 30% discount on select backpacks, lunch boxes and laptop cases. Eligible SKUs were merchandised on wall displays mimicking a school locker setting.Sister chain Old Navy partnered with Marvel Entertainment to offer a free comic book reprint with purchase of a "CollectabiliTee." The chain also spotlighted $10 apparel with "Class of $10" shelf signs, aisle violators and stanchions.Lowe's hosted a "Campus Kickoff" contest on Facebook from July 9-31 asking students to submit the top 10 reasons why they need the chain's help decorating their dorm rooms. A public vote from Aug. 1-17 determined the grand-prize winner, who receives a $500 store gift card and a prize bundle of 28 "dorm room essentials" (valued at $2,000). Four secondary winners get gift cards in smaller denominations and 26-SKU bundles. Marden Kane, Manhasset, NY, handles.Both Lowe's and The Home Depot merchandised storage bins in their upfront seasonal departments and on endcaps. Otherwise, Home Depot stayed on the seasonal sidelines.Ace Hardware also offered assistance to students setting up their dorm rooms through endcaps merchandising Fresh Wave's "Stinky Dorm Room Kit." Dick's Sporting Goods offered a $10 iTunes gift card with a backpack purchase of at least $49.98. The promotion was communicated via stanchions near entrances.Brand Activity: General Mills made its usual big splash with the evergreen Box Tops for Education program, this year hosting “The Big Clip” sweeps. Avery Dennison joined the program's list of outside partners by offering Box Tops on approximately 600 school and office supplies. (See "FSI Report: Aug. 9, 2009" in Related Articles.) Among retail overlays: Family Dollar hosted a sweeps awarding 50,000 bonus Box Tops (a $5,000 value) and laptop computers to 10 grand-prize winners. Entry was online from June 15 through Aug. 30. Rite Aid dangled a grand-prize of 100,000 bonus Box Tops, a laptop computer and a $1,000 store gift card. The chain's August "Single Check Rebates" catalog also offered a $5 rebate on the purchase of $25 in Box Tops-eligible products from General Mills, Kimberly-Clark, SC Johnson and Avery. Winn-Dixie offered 10 extra Box Tops to loyalty cardholders who purchased at least five participating products. Kmart offered 20 or 70 bonus Box Tops with purchase of, respectively, five or 10 qualifying SKUs. The offer was communicated on four-way signs in stores and features in circulars. Safeway chains offered two bonus Box Tops on select products that also participated in the chain's "10% Back to Schools" program. Walmart's Sam's Club devoted its upfront entryway to multiple General Mills brands delivering five Box Tops on special packaging. Publix hosted a Box Tops sweeps that delivered entry codes on peel-off stickers from participating products. Publix gift cards worth $100 were awarded to 500 winners.Kellogg Co. reprised its annual “Fuel for School” campaign, which encourages nutritious breakfast, lunch and after-school snack choices. The effort gained strong secondary placement in supermarkets and mass merchants via the perennial Keebler school bus and other displays. (See "FSI Report: Aug. 2, 2009" in Related Articles.) Among overlays, Rite Aid offered a $5 coupon by mail with purchase of $15 in participating Kellogg's items in its August "Single Check Rebates" catalog.

Seasonal Store Check: Back-to-School 2009

P2PI MEMBERS

JOIN P2PI

Related Images

Business Topic

Company

Market Segment