The Business of Going Back-to-school

Cleveland, Ohio (August 2007) – Once thought of as a time to load up on pens, pencils and paper, the back-to-school shopping season has exploded in recent years to become the second most profitable occasion for retailers, behind only the holiday shopping season. The National Retail Federation estimates that this year more than $54 billion will be spent to send students back-to-school and off to college, and American Greetings trend experts have dug a little deeper to learn exactly where all of this money will be spent.

• Higher Education: College students and their parents will spend more than $36 billion in back-to-school shopping this year, making them the top demographic in terms of overall sales.

• iCollege: One of the heaviest categories will come in the form of electronics. This year, the National Retail Federation estimates that college students and parents will spend more than $10.5 billion on items in this category including flat screen TVs, X-Boxes, iPods and notebook computers.

• Old-fashioned communications: This year, to help parents keep in touch with their college-age children, American Greetings has introduced new cards including a five-card pack that features offerings for holidays (such as Halloween and Valentine’s Day) as well as special occasions (like Spring break and finals week). Other offerings include a five-card assortment with more everyday greetings (like “missing you” and “good luck”) as well as fun new gift cardholders.

• Celebrating younger students: While they can’t match the spending power of their older peers, students in kindergarten through high school will be putting smiles on retailers faces this year as well. Total spending for this group is expected to reach more than $18 billion. Impressively, pre-teens will spend more than $15 of their own money on back-to-school supplies, while teens will chip in more than $31.

This fall many parents will be celebrating the fact that their children (teenagers especially) will be back in class. Cards commemorating everything from the first day of kindergarten to the new school year for a high-school freshman, sophomore, junior and senior are included in the new line.

• Teachers get ready, too: Summer may be a vacation for the kids, but it’s a time for teachers to prepare for the new school year. And as any teacher will tell you, this is a time consuming and costly process. In fact, The National Education Association reports that the average teacher will spend $443 out of their own pockets on materials for their classroom.

This year American Greetings offers some assistance for teachers welcoming a new class. New card packs allow teachers to offer a personal note to each of their students and a warm introduction to new parents. There are even cards for teachers to share a note with colleagues. One lighthearted example features a large pile of books on the front and reads, “Is it Friday yet?”

The new collection of back-to-school cards from American Greetings can be found at Target, as well as in American Greetings and Carlton Cards retail stores. Visit www.americangreetings.com/retailers for store locations.

About American Greetings Corporation
American Greetings Corporation (NYSE: AM) is one of the world’s largest manufacturers of social expressions products and greeting cards. Its product lines include gift wrap, party goods, stationery, calendars, ornaments and electronic greetings. Headquartered in Cleveland, Ohio, American Greetings generates annual net sales of approximately $1.7 billion. For more information on the company, visit http://corporate.americangreetings.com.