Back-to-School Shoppers Expected to Spend Record $135.5B as Bargain-Hunting Trend Rises

Back-to-School Shoppers Expected to Spend Record $135.5B as Bargain-Hunting Trend Rises

Back-to-school shopping is anticipated to reach new heights this year, with parents and students projected to spend a record-breaking $135.5 billion, according to the National Retail Federation and Prosper Insights & Analytics. Despite lingering inflation and increased prices for certain goods, experts believe that shoppers will be more inclined to hunt for bargains while still splurging on essential school items.

The research conducted by the National Retail Federation reveals that American consumers are eagerly starting their back-to-school shopping season early. Many families recognize the costs associated with education but remain unwilling to compromise on their children’s school needs. In fact, 50 percent of parents plan to spend more on classroom expenses compared to last year. The survey also found that an equal number of parents would consider applying for a credit card to save 5 percent on back-to-school items.

Back-to-school sales rank as the second-largest shopping period of the year, second only to the end-of-year holiday season. To assist shoppers in saving a few dollars, South Carolina and 16 other states offer tax-free weekends, where consumers can purchase clothes, computers, and composition books without paying sales tax.

According to the National Retail Federation, parents with children in grades K-12 are expected to increase their spending by 12 percent this year, reaching $41.5 billion. Additionally, the cash outlay for college-aged students is projected to rise by 27 percent, totaling $94 billion. On average, families with children in elementary through high school plan to spend $890 on school items, marking a $25 increase from last year. But for those with college-age dependents, the expenditure climbs to approximately $1,366 per student.

Though prices remain elevated due to inflation, shoppers are still seeking value and deals. Consumers are resorting to comparing prices, considering off-brand or store-brand items, and are more likely to shop at discount stores compared to the previous year, according to Phil Rist, Executive Vice President of Prosper Insights.

While online shopping remains an option, many consumers still prefer physically entering brick-and-mortar stores to purchase their school supplies. Department and discount stores are anticipated to be the top destinations for back-to-school shoppers.

To avoid crowded stores during tax-free weekends, some parents have opted to start their shopping early. Mandy McDermott from Summerville estimated that she would spend approximately $900 on back-to-school supplies for her two children. She purchased items such as pencils, paper, and markers in late July, after already buying shoes and clothes for her children. McDermott believes that avoiding the rush during tax-free weekends is worth it, especially with two kids in tow.

Letitia Kale, another parent from Summerville, shares a similar sentiment. She also shopped early to gather school supplies for her two sons, Bentley and Parker. Kale intends to spend around $600 on back-to-school items and avoids tax-free weekends due to the overwhelming crowds and the likelihood of essential items being sold out.

Taylor Wilson, a teacher from West Ashley, scoured the aisles of Target for classroom supplies, estimating a $600 expenditure on organizational items, markers, and calming tools for her young students. Wilson appreciates the in-store experience, being able to see and touch the items before purchasing. However, she concedes that she will likely join the throngs of shoppers during tax-free weekend, acknowledging the excitement of obtaining fresh supplies for her students.

Minu Basnet from West Ashley plans to spend around $600 on clothes, books, backpacks, and supplies for her two young children. Despite the crowded stores, she recognizes the potential cost savings during tax-free weekend and doesn’t mind the hustle and bustle.

South Carolina’s Department of Revenue encourages shoppers to seize the 72-hour tax break starting on Friday and ending on Sunday. Last August, the state witnessed over $26.2 million in tax-free purchases during this period, indicating increased savings for residents.

As families gear up for the new school year, it is evident that back-to-school shopping is more than just a simple errand. It represents a significant moment for parents and students alike. While cost-consciousness prevails, parents still aim to provide their children with the necessary tools and supplies for a successful academic journey.