As back-to-school shopping season approaches, families are grappling with high prices for everything from backpacks to pencils due to rising inflation.
Game Status: More than half of households plan to cut back on school purchases this year due to rising inflation, according to a nationwide survey by property and retail management firm JLL.
- Parents with budgets plagued by inflation plan to spend an average of 15% less.
- A third of parents who say their budget will not be affected by inflation plan to spend 31.5% more than in 2021.
Between the lines: The price of school supplies is being impacted by high energy prices, increased labor and transportation costs, and supply chain disruptions, said Patrick Penfield, professor of supply chain practice at Syracuse University’s Whitman School of Management.
What do you say: “Parents will be in for some sticker shock on clothes, sneakers and school supplies this year,” Penfield said. “Expect to “shrink” on tissues, pencils, papers, markers, and many of your other school supplies.”
- Liz Ewing, Marcus’ chief financial officer at Goldman Sachs, told Axios, “With inflation affecting the overall price of goods and services, shopping for back to school this year can seem like Christmas shopping.”
big picture: Back-to-school spending will still be up from last year’s record high of $37 billion, according to the National Retail Federation’s annual survey, which plans to spend an average of $864 on school supplies year-over-year. That’s about $15 more than the year before.
- The NRF said school spending has increased dramatically since the pandemic, with a shift away from virtual and hybrid learning.
- Households are expected to spend an average of $168 more on supplies in 2019 than before the pandemic, according to NRF.
- Deloitte’s 2022 Back-to-School survey shows spending is up 27% from 2019, with growth in clothing and accessories.
Flashback: The Child Tax Credit, which expired last December, helped millions of families prepare for the school year.
Tips for saving school supplies
A basket of about a dozen supplies is up an average of about 15% this year compared to last back-to-school season, according to Associated Press retail analytics firm DataWave.
In the meantime, more and more parents want to save According to JLL’s survey this year, nearly 60% of shoppers said they would look for special offers and coupons, including free shipping.
Here are some ways to fight inflation:
Student discount and rewards program
Target and bed bath and beyond Both have special discounts for college students for a limited time.
- Both retailers also have free loyalty programs – Target Circle and Welcome Rewards – that offer savings to all shoppers.
- Kohl’s, Macy’s, JCPenney, Old Navy and other retailers also have free rewards programs to monetize future purchases.
What do you say: “If there’s a retailer that you want to buy most of your school supplies from, make sure you’re part of their rewards program,” Kristin McGrath, savings specialist at RetailMeNot, told Axios.
- “You can’t change the price, but you can earn rewards for paying the cost down the line.”
Tax holiday offer sales tax rebate
first weekend in august It’s the largest for tax-free shopping in the country, with sales tax holidays in a dozen states.
Store clearance and sale of excess inventory
Many retailers have excess inventory they are trying to stand out, which makes it possible to save by shopping for the clearance shelf.
Our thought bubble: An Axios reporter visited three Walmart stores in South Florida, as well as multiple Target, Kohls, Macy’s and JCPenney locations, and found a large quantity of clearances.
working day sale
if you can stay Wait until Labor Day to buy clothes, said McGrath of RetailMeNot.
- The holiday weekend is expected to be “a great time to make those big wardrobe upgrade purchases,” McGrath said.
go in: A dozen states have tax-free school purchases this weekend
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