For Immediate Release: August 1, 2016
Retailers once again expecting big crowds this year as parents, students and business professionals take advantage of tax free shopping
TALLAHASSEE, FL – The Florida Retail Federation (FRF), the state’s premier trade association representing retailers for over 75 years, reminds Florida families, consumers and its 270,000 retailers that the popular annual back-to-school shopping season takes place this weekend, August 5-7. This annual tax free weekend allows Sunshine State families to save on supplies and clothes to prepare their children and themselves for the upcoming year. Nationally, the average family is expected to spend $673.57 on apparel and accessories, shoes and school supplies, up from last year’s $630.36. Nationally, sales for this back-to-school shopping weekend are expected to reach $75 billion, up from $68 billion last year.
“The back-to-school sales tax holiday remains one of the most popular shopping periods of the year in Florida with students, parents and business professionals looking forward to saving money on the clothes and items they need for school or work,” said FRF President/CEO Randy Miller. “We’re excited about what the weekend will bring in terms of increased sales for businesses and the important savings for consumers.”
The holiday means big savings for shoppers and big business for retailers, which has become the second largest shopping weekend after Black Friday. As part of the holiday, shoppers don’t have to pay sales tax on back-to-school items including clothing and shoes priced at $60 or less, and school supplies less than $15 per item. For a complete listing of all eligible items, please click HERE.
This year’s back-to-school sales tax holiday allows eligible businesses to OPT OUT of participating when less than five percent (5%) of their gross sales of tangible personal property during calendar year 2015 were sales of items that would be exempt during the tax holiday period. Qualified businesses had until August 1 to notify the Department of Revenue that they were opting out and must post a notice at each business location stating their choice not to participate in the Back-to-School Sales Tax Holiday.
According to FRF’s partners at the National Retail Federation’s recent survey, families with children in grades K-12 plan to spend an average $673.57 on apparel and accessories, electronics, shoes and school supplies, up from last year’s $630.36 for a total of $27.3 billion, according to the survey. That’s an increase of 9.6 percent from last year’s $24.9 billion and compares with a total growth of 54.8 percent over the past 10 years.
The numbers follow a pattern in which spending often increases one year as families stock up on supplies only to drop off the next as they get a second year out of longer-lasting items like backpacks or computers. Spending then increases in the third year once children outgrow clothing or items need to be replaced.
According to the survey, K-12 consumers plan to spend $9.54 billion on clothing (purchased by 95 percent), $8.27 billion on electronics such as computers or calculators (57 percent), $5.12 billion on shoes (94 percent) and $4.37 billion on school supplies such as notebooks, folders, pencils, backpacks and lunchboxes (96 percent). Parents say they will spend an average $235.39 on clothing, $204.06 on electronics, $126.35 on shoes and $107.76 on school supplies.
While discount stores continue to be the choice of the largest share of shoppers at 61 percent, the number is at its lowest level in the survey’s history. But 46 percent of parents said they would shop online, a dramatic jump from last year’s 36 percent. The vast majority of online shoppers plan to take advantage of free shipping (89 percent of those surveyed) and conveniences like buy online, pick up in store (54 percent).
Bigger Kids, Bigger Bills
College students and families with children in college plan to spend an average of $888.71, according to the survey. That’s down slightly from $899.18 last year, but total spending is expected to be up at $48.5 billion compared with $43.1 billion last year due to an increase of consumers shopping for back-to-college.
The survey found college consumers plan to spend $11.54 billion on electronics (purchased by 50 percent), $7.49 billion on clothing (70 percent), $6.23 billion on dorm furnishings (43 percent), $5.78 billion on food items (69 percent), $4.26 billion on personal care items (72 percent), $3.84 billion on shoes (67 percent), $3.53 billion on school supplies (81 percent), $3.14 billion on gift cards (36 percent) and $2.7 billion on branded collegiate gear (49 percent). Spending on electronics will average $211.33, apparel and accessories $137.29, dorm furnishings $114.21, food $105.88, personal care items $78.03, shoes $70.39, school supplies $64.64, gift cards $57.54 and branded gear $49.41.
Discount stores still account for the largest share of college shopping, visited by 44 percent of consumers, but the number is at its lowest level in the survey’s history. Only 34 percent will visit a college bookstore, also a new low. Online shopping is the choice of 38 percent of shoppers, down from 39 percent last year and a peak of 45 percent two years ago.
The survey of 6,809 consumers asked about both back-to-school and back-to-college plans was conducted June 30-July 6 and has a margin of error of plus or minus 1.2 percentage points.
ABOUT THE FLORIDA RETAIL FEDERATION
The Florida Retail Federation is the statewide trade association representing retailers -- the businesses that sell directly to consumers. Florida retailers provide one out of every five jobs in the state, pay more than $49 billion in wages annually, and collect and remit more than $20 billion in sales taxes for Florida’s government each year.
ABOUT THE NATIONAL RETAIL FEDERATION
As the world's largest retail trade association and the voice of retail worldwide, the National Retail Federation's global membership includes retailers of all sizes, formats and channels of distribution as well as chain restaurants and industry partners from the U.S. and more than 45 countries abroad. In the U.S., NRF represents the breadth and diversity of an industry with more than 1.6 million American companies that employ nearly 25 million workers and generated 2010 sales of $2.4 trillion. www.nrf.com.