Back-to-school spending on track to hit record high
Back-to-school spending in America is expected to hit an all-time high of $148.8 billion, according to a survey sponsored by National Retail Federation (NRF), an industry trade association.
The association, which tracks significant shopping events throughout the year, said back-to-school spending for students in kindergarten through college is more than the combined total for four other major shopping events—Mother’s Day, Father’s Day, Easter, and the Super Bowl.
In a webinar Mark Mathews, chief economist and executive director of research for NRF, and Allison Zeller, NRF’s vice president of consumer and industry insights, discussed the survey results.
Zeller said that while more consumers are starting their back-to-school shopping earlier, most were taking longer to complete their lists. “It’s not procrastination,” she said, noting that the reasons consumers gave for taking longer to complete the seasonal shopping are: waiting for the best deals (46 percent), not knowing yet what is needed (38 percent), spreading spending through several budgeting periods (23 percent), finding prices too high (17 percent), believing there will be deals and promos throughout the season (14 percent), and trying to figure out how to pay for what is needed (12 percent). The numbers total more than 100 percent because some respondents gave more than one answer.
The survey indicates that affordability is top of mind for consumers this year, among whom 61 percent found prices higher this year than last. Among those surveyed, 22 percent found prices about the same as last year, 8 percent found prices lower than last year, and the rest were unsure.
Asked about their strategies to stay within budget, 46 percent said they are doing more comparative shopping this year; 41 percent said they are shopping at discount stores; 38 percent said they remain on the lookout for coupons and sales; 38 percent said they are buying fewer items overall; and 30 percent said they are purchasing different brands than those they normally buy.
Many families, particularly those with several school-age youngsters, are visiting back-to-school events where businesses and nonprofits are offering free school supplies. This year, dozens of DeKalb County organizations, large and small, invited students to celebrate the return to school with events that included school-related giveaways.
“While our main purpose in holding a back-to-school event each year is to get youngsters in our community excited about learning, we also want to give families a little boost by providing some basic school supplies such at paper, notebooks, pens, and pencils,” said Deetra Poindexter, youth director at Gresham Park Christian Church in Decatur. This year, the church on Flat Shoals Road partnered with other community organizations for a Back-to-School Bash July 25. She said the church will again partner with another nonprofit at a follow-up event at the church on Aug. 8, where additional school supplies will be made available to the public.
“We know that we and our community partners cannot give the young people everything they need as they return to school, but we know budgets are tight and hope we can help a little,” Poindexter said.
Mathews pointed out that increasingly, school needs include more than paper and pens. Often high-tech electronics, which can be quite expensive, are part of the picture. Some kindergarten through high school learning institutions supply these; but college students, who usually need more sophisticated equipment, are on their own, he said.
The NRF survey indicated that back-to-school is “a highly resilient consumer spending event,” according to Mathews, who added, “Families are willing to do whatever is necessary to see that their young people have what they need for school.”
Most shoppers indicated that they’re willing to use additional financial strategies, including cutting back in other spending areas (37 percent), using buy now, pay later options (20 percent), and working overtime hours (17 percent).
