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Shopping in session

The tax holiday on school items doesn't begin until July 22, but the hunt for bargains has begun.

By MARK ALBRIGHT
Published July 13, 2006

Lisa Weisickle was beating the bushes for back-to-school bargains Wednesday.

"We start every year before the sales tax holiday," said the Clearwater mother as she combed Tyrone Square Mall in St. Petersburg for 50 percent off or better deals with her two teenage daughters, Amy and Sara. "Frankly, it's not worth fighting those crowds just to save what, 70 cents sales tax on a $10 item."

The last shreds of July Fourth fireworks may still be paper the back yard, but back-to-school shopping season broke out in earnest this week.

Thanks to most local public schools reconvening again in early August, retailers are assembling displays and stepping up ads timed for this weekend. The state government lends its hand to boost sales the following week by forgiving sales tax on many back-to-school items for a nine-day tax holiday that runs July 22-30. Sales taxes range from 6 to 7 percent, depending on the county.

With many economists forecasting a slight consumer spending slowdown, retailers are happy for any boost they can get from an outside source.

"We're looking for a strong season, but there are some storm clouds gathering in the economy," said Conrad Szymanski, president of 82-store Beall's Department Stores.

"It's been slow so far," said Bayan Abraham, owner of Velocity, a St. Petersburg hip-hop apparel shop. "But I'm optimistic. The sales tax holiday really got everybody out last year."

The Legislature decided to stage the state's seventh back-to-school tax holiday, which exempts from sales tax most apparel, footwear and books priced at $50 or less and school supplies priced at $10 or less. (See chart for the rules.)

"We've done it often enough that everybody understands the rules," said Rene Watters, spokeswoman for the Florida Department of Revenue. "Nothing's really changed from last year."

Overall, the state is giving up about $39-million in state and local-option taxes.

Retailers are encouraged that several industry-inspired trends are gaining traction with shoppers.

There are so many pairs of oversized cargo pants and shorts in closets that retailers figure shoppers have little interest in buying more. So plaid shorts are all over the stores. The baggy denim look reached such extremes that men and women are ready to buy into a more tapered look in what are called "skinny jeans."

At the peak, billowy jeans leg holes for men hit a circumference of 28 inches around. This year, the stores are pushing 14 inches for men. In women's jeans, leg holes have shrunk to 12 inches, down from 20 a year ago. Some stores are promoting "messenger shorts," a more tapered short the length of women's capri pants that have been the rage in Europe, where they are called "manpri pants."

Apparel stores are pushing the layered look to teens in an attempt sell more outfits. New surfer styles feature a polo shirt over a long-sleeve one. Macy's developed "2-fer" tops that combine both in a single garment for Florida's hot climate.

"Leggins are a big deal," said Melissa Goff, fashion events coordinator for Macy's, which stocks them in black, white, ivory heather and lace.

Girls are wearing them with mini-skirts or long tunics. There is some debate over length, however, with most stores insisting ankle-length is not as cool as somewhere below the knee but above the ankle.

Gold and silver foil prints are big in T-shirts. Camouflage is big in all shades, including pink, blue and the government-issue gray worn by troops in Iraq. One big accessory design item: skulls shaped in rings and earrings and even imprinted on premium jeans pockets at Neiman Marcus.

Another shift: Many schools that require uniforms have loosened the rules. Many schools say that as long as students wear a solid polo shirt, the color does not matter.

Many chains, meanwhile, have broadened their approach to furniture, dorm linens and consumer electronics this year after word spread last year that back-to-college spending was as big a chunk of the $14-billion spent on back-to-school purchases as was K-12 spending.

Economists forecast a slowdown in spending growth this quarter. They cite what have become the usual suspects: soaring gas and energy prices; a slowdown in housing sales; rising inflation; sagging consumer confidence; and rising interest rates. But that's balanced by near-full employment, and higher wages and net worth.

"No question, there will be some slowdown in the growth of consumer spending," said Leon Nicholas, an economist with Global Insight's national consumer practice. "But it promises to be a reasonably good back-to-school season."

"Sales of things people do not have to have are likely to suffer, but back-to-school is not discretionary spending," added Richard Hastings, who tracks retailers credit ratings for Bernards Sands LLC in New York, noting that June retail sales nonetheless were "pretty bad" for many retail chains.

[Last modified July 13, 2006, 06:39:35]