Rising prices and debt problems are prompting many grandparents to contribute towards back to school purchases as families find it increasingly difficult to cope.

USA Today reports that children's clothing retailers are seeing a rise in the number of older customers making purchases in their stores.

Research carried out for the publication by Pitney Bowes MapInfo reveals that cities with larger retirement communities are seeing increased sales of kids' apparel.

Commenting on the findings, Meg O'Beirne, marketing director at Kelly's Kids, told USA Today: "Grandparents are in a better position to lend a hand in tough times."

And Carolyn Beem, a spokesperson for L.L. Bean, said it is hardly surprising that grandparents are helping with bills at a time when families are facing debt pressures.

Figures release by the Commerce Department last week show that personal income fell 0.7 per cent in July, while real consumer spending declined by 0.4 per cent.

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