Back to School Starts Early This Year as Parents Plan to Spend More

Parents are already on the hunt for back-to-school (BTS) gear, and they’ll be spending an average of 21.8 percent more than they did in 2023.

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A back-to-school survey from commercial real estate firm JLL found that parents with annual income over $50,000 do not plan to cut back on their BTS budgets, while those with higher incomes said they plan to allocate a larger share of their budgets to discretionary purchases rather than school-required items.

Parents also said they plan to shop earlier than usual, with 75 percent noting they expect to have already started by July, and one-quarter of parents saying they planned to start in June. JLL said the earlier start could explain the increase in May retail sales tracked by the U.S. Census Bureau across school-related categories, such as electronics and general merchandise and apparel stores.

“For the second consecutive year, parents are increasing their per-child spending from $390 to $475, despite concerns about inflation,” JLL’s senior analyst of retail research Keisha Virtue said. “Our survey demonstrates that parents are prioritizing back-to-school essentials and will continue to play a crucial part in driving consumer spending and foot traffic.”

While the trend toward increased spending may have retailers seeing dollar signs, they won’t know how successful the 2024 BTS season was until after the rush, when they get a better picture of how many units were actually sold. Last year, parents upped their BTS spending budgets too, but that was to account for higher prices resulting from inflation.

However, consumers have generally been buying more this year, possibly due to concerns that global political matters could result in supply chain disruptions and shortages later in the year. Meanwhile, retailers are stocking up to meet demand, and inbound cargo v olume at major U.S. ports is expected to reach its highest level in nearly two years this summer. The peak season is typically August through October as retailers prepare for the fall and holiday selling seasons.

The study also found that 90 percent of parents plan to visit a physical store this season, with respondents indicating they will spend more than 63 percent of their budgets in stores versus online.

“With the hefty rise in parents shopping in physical stores and the availability of multiple retail options, parents are taking advantage of sales, deals and coupons while also exploring different store options to find the best value for their back-to-school needs,” JLL’s Retail Advisory Services president Naveen Jaggi said. JLL’s study pointed to Walmart, Amazon and Target as the top choices for parents, with Costco, Old Navy and Dollar General also headlining lists.

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A Coresight Research report found that 59 percent of shoppers with children ages five through 17 are expected to favor Walmart as the go-to retailers for BTS. The Coresight report also determined that specialty apparel retailer Old Navy “is set to gain share of shoppers this year.” And while many low-income consumers will head primarily to the dollar-store channel, high-income consumers—those with annual household income of $100,000 and more—are expected to gravitate towards Target, American Eagle and Gap. The Coresight study also found that “retailers offering products at full price are set to lose an advantage as consumers seek promotions this BTS season.”

To draw wallet share away from the competition, Target on Monday said it was making BTS shopping more affordable with the introduction of 20 must-have supplies under $20, citing to its lowest-priced backpack in over 10 years for just $5. The big box store is also offering monthly subscription pricing for its Target Circle 360 rewards members, which includes unlimited same-day delivery.

In May, Target said it would roll back prices on 5,000 frequently shopped items, with cuts on 1,500 items immediately and the balance occurring throughout the summer. And in February, the retailer launched its low-price, private label brand Dealworthy. The line features an assortment mix spanning apparel and accessories, electronics, and home items, most at under $10 and some at less than $1.

Not to be outdone, Walmart already has BTS selections prominently displayed on its site and Amazon Prime Day, slated for July 16 and 17, will offer timely deals on BTS products.

Other retailers and brands are also getting into BTS mode. Urban Outfitters on Wednesday is set to showcase its home campaign “Space Shift,” which features BTS must-haves inspired by Pinterest trends. And tween fashion brand Limited Too will celebrate its relaunch after a 15-year hiatus by heading to Kohl’s—in stores and online—this month for BTS. Limited Too said the line will feature a range of “trendy and playful styles” for the school year.

Separately, as many consumers continue to hunt for value, the JLL study also found that 48 percent of parents will buy fewer products or purchase second-hand to save money.

That could benefit the resale market, which includes online resellers such as Depop, ThredUp and Poshmark. Goodwill Industries , which now has 500 locations, could also be a beneficiary of the business bump, along with its web-based arm, GoodwillFinds , which recently partnered with technology providers Neatoscan and Upright Labs to help it scale up operations. And then there’s Legacy Bundles, the apparel swapping site founded by Shannon and Anthony Taylor to help parents of toddlers and pre-K trade apparel options for any size—up to 5T—and gender.

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