Tax-free days, outlets are tops for school shoppers
August 11, 2008
The Texas comptroller's office estimates that shoppers will save $54 million this weekend during Texas' annual tax-free shopping holiday, when consumers will not be charged local or state sales taxes on selected items that cost up to $100.
Written by Regina Dennis, Austin American-Statesman
The kids are returning to classrooms soon, leaving one final task to close out the summer: back-to-school shopping.
Parents are expected to spend $20.1 billion on back-to-school items this year, according to the National Retail Federation. About one-fifth of parents with school-age children saved their economic stimulus checks to spend on school clothes, a federation survey showed.
The Texas comptroller's office estimates that shoppers will save $54 million this weekend during Texas' annual tax-free shopping holiday, when consumers will not be charged local or state sales taxes on selected items that cost up to $100.
Spending on apparel has decreased nationally 5.5 percent from last July, according to reports by the International Council of Shopping Centers.
But there's an exception: outlet centers.
Linda Humphers, editor in chief of Value Retail News, a trade publication for the outlet retail industry, said outlet centers historically "have been known to kind of buck the trend" when consumer spending decreases during economic downturns.
"When people need to cut back, they want to cut back on price first and quality last, and if they have the opportunity to get bargains from the stores they like and also get the selection they want, they will look to the outlet centers," Humphers said.
Pat Stroud, 61, said she prefers going to strip malls where she can park right in front of the store she wants to shop in. But recently she drove to the Prime Outlets in San Marcos from her home in Highland, about 50 miles north of Austin. She said she visits the center about once a year.
"I used to bring the kids out here for back-to-school shopping because the deals are pretty good. And you can just sit down, give (the kids) money and tell them to go get what they want," she said.
Celena McGuill, marketing director for Prime Outlets, said traffic has increased greatly at the center since May. Based on the number of cars in the parking lot, Prime Outlets has seen a double-digit percentage increase over last summer, she said. The center does not release exact figures, McGuill said.
Michele Rothstein, senior vice president of marketing for Chelsea Property Group, which owns Round Rock Premium Outlets, said his center also has seen a significant increase in traffic since July 2007.
Rothstein said customers are "thinking twice about buying something and looking for a good deal. So people are looking pretty favorably on outlets in general."
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