For the A-to-Zs of back to school, here's a look at five quintessential back-to-school brands, along with whether you should be buying stock at the same time you're stocking up.
According to the National Retail Federation, parents will be spending nearly as much this year ($603.63) as last year ($606.40) on back-to-school shopping, including clothing, supplies, and electronics. Despite the consumer cutbacks, combined K-12 and college spending this year will reach $68.8 billion.
My Foolish colleague John Maxfield recently discussed the end of the brick-and-mortar bookstore, but I don't think the bell has tolled just yet. Although Borders' liquidation sales are driving customers away from Barnes & Noble
If you're not the brick-and-mortar type, Amazon.com
Mini vs. Mac
According to the National Retail Federation, nearly 50% of consumers will be spending less this year on back to school. Although computers, laptops, and even tablets are no longer strictly in the luxury category, purchasing a new one every year is. The PC winner for back to school will offer the best deals with a high level of service and no unnecessary (and costly) add-ons.
Dell's stock has continually performed for the past year, with only slight dips. And Dell's getting scrappy, running a series of attractive back-to-school promotions, including free shipping, financing, and bonuses. Apple's promos don't come close.
But although Dell may see a burst of sales over Apple this fall, its profit margins can't compare in the long term. Apple's gross margin of 39.8% -- compared with Dell's 20% -- shows that despite much higher prices than Dell, Apple is continuing to run smoothly, with the flexibility to try new things.
Dell might sell more computers this fall, but you want Apple for a long-term buy and hold.
Most pack-toting students this fall will be sporting one of VF's
VF is on the cusp of an impending acquisition of Timberland
- Add VF to My Watchlist.
Where does that leave us?
Back–to-school spending is the best indicator whether the holiday shopping season will be a merry one for retailers. What are the students in your life buying?
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