Back-to-School Results "Soft". Hmm...Really?!

We were taken aback a bit by seeing that early Back-to-School sales are viewed as "softer than expected." 

Then, in contrast to that negativity, we saw this report:

"In August, American consumers were the most upbeat in more than five years. The Bloomberg Consumer Comfort Index rose to its strongest reading since January 2008."

So, what's happening? 

Well, for one thing, the glut of apparel and small electronics available at deflationary prices continues to lower the average unit sale in most stores.

"Oh, so if sales are down 2-4%, I might actually be even with L.Y. in units sold?"  Right! 

A second "Big Picture" factor: basic demographics. Who produced that BTS market of 6 to 22 year olds? 

Oh yes! They are Generation X, born between 1962 and 1978. That small group born after the Baby Boomers and before the Millennial Generation. Generation X is a decidedly smaller group than those before or after them.

"Back-to-School sales are disappointing." Oh really?! Maybe they are actually darn good! 

And maybe all these converging trends help explain why retailing is forever challenging. And so much fun!!