College students returning to Shore is great news for local businesses

The Lower Shore population swells this week by more than 12,000 residents, mostly students returning to area universities for the fall semester.

With them comes discretionary income.

As early students and parents discovered during Move-In Day for freshmen and other new arrivals, college towns are offering new options in dining, entertainment and retail shopping.

That equates to more competition for student dollars.

"Our business has probably doubled," said Lynn Taylor, a bartender at Peaky's Restaurant and Sports Pub in Princess Anne.

The popular spot for crab cakes and fried chicken also offers occasional live entertainment and attractions as trivia contests. Many of the special offerings are designed to capture the estimated 3,600 or more students expected to pour in this week to the University of Maryland Eastern Shore.

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On Thursday as some 800 new students arrived for fall classes, Peaky's added an extra person to its wait staff for the rush of diners.

"Today compared to the same time last week, our business has probably doubled," Taylor said, surveying the crowded dining room. "I'm seeing people we haven't seen before."

The restaurant is deciding on student-driven attractions as it competes starting this year with the newly opened M Street Grille, a nearby sports pub catering to university students.

UMES students crowded into M Street on Thursday night to check out the new pub in town. The restaurant extended its nighttime hours by about four hours and added a DJ to create a festive welcome for new students.

"We've seen new ones today and yesterday," said manager Ja Lyssa Hernandez. "This has a connection with UMES and is student-driven, so I'm sure we'll be popular with students."

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Lori Harrison wasn't on the UMES campus for more than a few minutes on Thursday when she realized her family would be making a trip to Wal-Mart — again.

"We stopped at Wal-Mart this morning and we'll have to make another trip," said Harrison, whose daughter, Jazmyn Jameson, is an entering freshman. "We're buying items for her dorm room, like wall hangings, decorations, items like that."

The huge impact of student spending

Parents are breathing easier in a post-recession period, contributing to more than $80 billion in overall back-to-school and back-to-college spending this year, according to the National Retail Federation.

NRF studies project overall spending for back to school and college will reach an all-time high of $83.6 billion this year, with purchases of electronics, clothing and shoes topping the list. That's a whopping $7.8 billion increase, or more than 10 percent, over the $75.8 billion spent a year ago.

"With consumer confidence rising and more young people in school, back-to-college spending is expected to hit an all-time high this year," according to a new NRF survey.

"Families are now in a state of mind where they feel a lot more confident about the economy," said NRF President and chief executive Matthew Shay. "With stronger employment levels and a continued increase in wages, consumers are spending more and we are optimistic that they will continue to do so throughout the rest of the year."

A near-flat tuition increase this year for in-state undergraduates — a hike of 2 percent at four-year Maryland state universities — could add more dollars to discretionary income for students and parents. The average back-to-college shopper is expected to spend per household an average of $970, the NRF said.

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At Salisbury University, the tuition increase translates to $68 per semester, said Richard Culver, university spokesman. In-state graduate students are paying slightly more, a 2.9 percent increase.

"At SU, that translates into $99 per semester for full-time coursework," Culver said, and noted that most students, some 85 percent, are from in-state.

Business friendly stores accept credit or debit university cards, making retail transactions easy for students. The SU Gull Card is accepted at most places.

"Most of them are eateries popular with students," Culver said. "I think a lot of these places also use student staff, so they may look to the students not only as patrons, but as employees."

Overall, SU contributes $480.5 million annually to the local economy. Of the total, some $90 million is in students' local spending and $4.4 million is visitors' local spending.

According to a Student Watch study by the National Association of College Stores, the price of products is the driving factor for university students when deciding where to shop, while the location of a store was a close second. For instance, some 93 percent of students said the price drove their decision, while 89 percent considered the location. By comparison, store hours were a key factor for 69 percent of students and the availability of name-brand products was a deciding factor for 47 percent.

“A factor that appears to have much less influence on students’ decisions about where to shop is whether store profits are kept in the community,” according to Student Watch 2011: Retail Edge: Insights Into Your Core Consumer on Campus.

The several bank branches in the small town of Princess Anne also are quietly competing for student attention, observed Dennis Williams, president of the Princess Anne Chamber of Commerce.

“That’s something people don’t think about,” said Williams, who erected a “Welcome UMES Students” sign on a marquee entering the town. “Restaurants are just a part of it. Banks want new accounts, and they go out of their way to reach students.

“And then there are the small businesses, like nail salons,” Williams said. “Girls love to get their nails done.”

Mike Vizard, whose Cheers! beverage store sits at the foot of the SU campus, expects to see between 20 and 25 percent more profits when students return.

"The past summer was a bit slow because kids leave and temperatures go up and there is a local depletion as well," Vizard said. "We are blessed…when the college is open."

His store specializes in craft beer, promoting local brands. Nearby, a Thirsty's convenience store specializes in domestic beers, creating less competition, Vizard said.

"Students are moving in, and we'll be busy tonight and tomorrow and we expect 14 strong days in a row with Move-In Day this week and the holiday coming next week."

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