July 28, 2020
COVID Impacts Promo’s Back-to-School Sales
Still, distributors are hustling to make the best of a tough environment through personal protective equipment and other solutions.
Normally, Heritage Screen Printing’s (asi/700490) shop in Warminster, PA would be humming with activity over the summer. Owner Steven McKee and his team would be busily screen printing and embroidering all manner of back-to-school-related orders for clients that range from Philadelphia public high schools to area colleges.
But this year, there’s an unsettling level of inactivity in the shop when it comes to back-to-school work. While Heritage and other industry firms have found success producing face masks for education market clients, much of the other business for back-to-school that would normally be occurring hasn’t yet materialized – a consequence of COVID-19 disruption, said McKee.
“So far, it’s not looking good,” said McKee, noting that Heritage generates about 40% of its business from the education market. “I could see this back-to-school season being down 50% to 60%.”
McKee’s situation is emblematic of the struggles many promotional products distributors are contending with when it comes to back-to-school sales. They say that, on the whole, business is down. Both public and private kindergarten through 12th grade clients, as well as colleges and universities, have pulled back on ordering as they grapple with the challenges tied to school reopening and COVID-19.
Teachers and parents who are currently weighing their options when it comes to school reopenings in the middle of a deadly pandemic may have one additional challenge ahead: children who are fearful of returning to school. https://t.co/KCJAGIg3a3
— CNN (@CNN) July 28, 2020
Some school districts, like the nation’s second biggest in Los Angeles, are not holding in-person instruction this autumn over fear of viral spread. Other districts and higher education entities are puzzling out options that could include everything from expanded cyber learning to staggered schedules, all while developing coronavirus-driven safety protocols if they plan to offer some level of in-person instruction. Some schools at the local and collegiate levels have canceled fall sports; others are contemplating canceling, while others still plan to move forward with games. Some 65% of colleges were preparing to reopen in-person instruction for the autumn semester, but that meant 35% were not, a recent survey found.
All the upheaval has negatively impacted back-to-school sales at retail. And, the unfortunate phenomenon has spread to promo, too.
“The sales season for back to school is still up in the air,” confessed Tony Poston, president of College Hill Custom Threads (asi/164578), which works with universities and collegiate student groups across the United States. “We’ve had some orders, but they are trickling in slowly. Usually, we have a lot of orders written up in May and June for back to school, but that wasn't the case this year with uncertainty surrounding in-person instruction, athletic events and fraternity/sorority recruitment in the fall.”
Bill Gates: Benefit generally outweighs cost for young kids to be back in school @CNBC https://t.co/GeggF3afwM
— Carmine Pirone (@CramersShirt) July 28, 2020
Poston said a primary challenge is the unknown around large in-person events. “Most of what we do for universities is tied to an event of some sort,” he explained, noting College Hill’s back-to-school sales could decline 50% this year. “Fraternity and sorority recruitment are huge for us. Much of that has turned virtual. Sports are also big with gameday giveaways. None of those have been ordered this year.”
Asif Jessani offered a similar perspective. The partner at Lawrenceville, GA-based CCS: Marketing & Technology (asi/350474) said the back-to-school sales season is either delayed or nonexistent. “Our clients’ administrative offices have been closed and in-person events canceled, which means no one is ordering branded giveaways,” Jessani said. “Our orders usually revolve around apparel, motivational staff gifts, student bags and marketing items. All such orders are on pause.”
Adapting Through Mask Sales and More
Still, Jessani and others are adapting to generate some business from the back-to-school sales season. “Most of our larger educational clients are starting with remote learning. As a result, we are brainstorming at-home items that staff, teachers and students can use to enhance their virtual learning environments,” he explained.
A distributor with diversified service offerings, CCS also offers various technology solutions, which it has been providing for education clients. These include student information system implementation, email and cloud storage configuration, classroom infrastructure and student/staff safety.
Others, like Heritage, are pivoting hard to sales of personal protective equipment (PPE) like face masks. “For education clients that are having in-person learning, we’ve done lots and lots of masks,” said McKee.
College Hill is selling PPE too, among other initiatives. “We’re seeing an uptick in PPE sales in both our corporate and collegiate divisions,” Poston detailed. “It doesn’t make up for the lost business, but it’s helping keep our doors open and staff together. We’ve also been doing a lot more dropship direct to home. We’re working on virtual pop-ups, too.”
Meanwhile, franchisees of Top 40 distributor Fully Promoted (asi/384000) have focused efforts on mask sales. Bill Reilly, a Fully Promoted franchisee based in Mendota Heights, MN, has been producing masks for private schools in his home state. He typically presents two or three options, noting that providing samples is key.
“These options seem to eliminate any concerns relating to conforming to the student uniforms or logo colors,” Reilly explained. “First, I usually identify the uniform and/or logo colors that a specific school uses before presenting anything to them. I’ll offer two colors of masks that match well with the existing school colors. I also offer a simple black and white option. And, I've been offering another color option for faculty and staff to wear that’s different from the student masks.”
Mike Brugger, president of Fully Promoted, said that gaiter-style coverings and washable fabrics that allow for breathability have been popular among education buyers. Providing masks in multiple sizes is also critical. “As this product is in the hands of kids, we ask for MSD sheets on the ink and fabric used” in branded masks, Brugger noted.
It’s not all about masks, though. Some distributors reported that they’ve delivered or are gearing up to deliver antimicrobial pens, no-touch door openers, hand sanitizer, and hand sanitizer dispensers. Distributors have also sought to augment mask orders with products that make the masks more comfortable to wear and/or easier to keep track of, including mask leashes, mask hook extenders and mask ear loop covers. Safety signage is also a sought-after item.
Other promo companies are looking into creating web stores that will help parent-teacher groups sell merch virtually to propel fundraisers. And, while not at levels of years past, others are still making the most of traditional opportunities that exist with back-to-school, providing everything from drinkware and fashion-forward apparel to school spirit kits that come with an array of wearables and tech items for colleges.
While the sales environment is challenging, Poston said it’s important to persist and stay positive.
“I'm very excited for the light at the end of the tunnel,” he said. “I know our staff and company will be better coming out of this thing.”