Thrift and discount stores are taking on a new luster as recession-strapped shoppers search for back-to-school bargains at less-than-typical venues.
While national surveys paint a depressing picture for most retailers, Goodwill Industries is projecting a vibrant start to the school shopping season.
Sales at nonprofit Goodwill’s 17 Front Range stores are already up 29 percent this year and show no signs of slowing, officials there say.
And discount retailers such as Wal-Mart, Ross and T.J. Maxx are expected to see sales gains in coming months at the same time mainstream department stores gird for declines.
Total back-to-school spending is projected to drop 7.7 percent this year, according to a survey by the National Retail Federation.
“The economy has clearly changed the spending habits of American families, which will likely create a difficult back-to-school season for retailers,” said Tracy Mullin, president of the retail federation.
The thrift-store renaissance has been building since the recession began in late 2007 and could reach its apex in August with a back-to-school surge.
“Our sales are extremely strong,” said Ric Berninzoni, vice president of retail operations for Goodwill Industries of Denver. “It’s mainly because of the economy, and the cost of putting your kids into school keeps growing.”
Goodwill is projecting 2009 sales of $28 million for Front Range stores, up from last year’s $22 million. Net proceeds from sales go to the agency’s programs for the disabled, at-risk youth and job training.
The only concern on the horizon for Goodwill is the prospect of donations failing to keep pace with surging sales.
Donations are increasing at just half of last year’s pace, a consequence of the economy.
“People are holding on to their things longer,” Berninzoni said.
Denver resident Heather Quiroga is a regular at Goodwill’s two-year-old store at 21 S. Broadway in Denver.
“I’m here all the time,” said Quiroga, the mother of a 3-year-old son and 5-year-old daughter. “Kids grow out of things so fast, it just doesn’t make sense to buy new.”
Back-to-school shopper Marna Sumners this week paid $16 at Goodwill for name-brand pants, shoes and sweats that she estimates would have cost more than $200 new.
Sumners said she’s a veteran bargain hunter, but as the recession has taken a toll on the Trattoria Stella restaurants she and her husband own, there’s more urgency to limit spending.
Wal-Mart doesn’t issue sales projections, but the chain likes its back-to-school prospects, Denver-region spokesman Bill Wertz said.
“People are going to be very cost-conscious,” he said.
Steve Raabe: 303-954-1948 or sraabe@denverpost.com
School supplies
School-supply season is in full swing. Many retailers are featuring products at sale prices. Below is a comparison of several common back-to-school items, listed at their regular price followed by sale price.
Office Depot Target Walgreens Wal-Mart
Spiral notebook, 100-page $4.99/na $1.50/na $4.99/$3.99 $1.50/na
One-inch binder $1.99/$.75 $2.75/$2.54 $1.99/$1 $1.78/na
No. 2 pencils, 8-10 count $1.99/na $2.19/na $1.49/$0.33 $1.44/$.50
Ballpoint pens, 10-12 count $1.79/na $1/na $2.29/$1.50 $1/na
Elmer’s school glue, 4 oz. $1.29/na $.25/na $1.89/$.99 $0.78/$0.25
Crayola crayons, 24 count $0.99/$0.50 $0.25/na $2.49/$0.66 $0.25/na
Two-pocket folder with prongs $1.99/na $0.97/na $0.59/$0.20 $0.97/na
Notebook paper, 150-175 count $0.99/na $0.99/na $1.99/$1.50 $0.75/na
Day pack, two-compartment $29.99/na $19.99/$17 $19.99/na $20.88/na
*Some sale prices valid only through today
Spending changes
Typical families are expected to spend 7.7 percent less on back-to-school shopping this year compared with 2008, according to a National Retail Federation survey. Here’s how it looked in previous years.
Per-family spending on back-to-school supplies:
2009: $549 (forecast)
2008: $594
2007: $563
2006: $527
2005: $444
2004: $483
2003: $451
2002: $442
Source: National Retail Federation
