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Report Says Parents Will Spend More on Back-to-School, Despite Inflation
Though economic headlines continue to focus on rising prices, one noteworthy piece of news is that parents plan to expand their back-to-school budgets by 21.8%. This data comes from JLL’s just-released “Back-to-School Shopping Report 2024.”
Here’s something else that’s significant: Almost 90% of parents surveyed by JLL said they plan to interact with physical stores in some way in their back-to-school shopping.
Surprise #1: The Budget Increase
“It was surprising to see how much planned budgets were increased, although parents were concerned about inflation,” Keisha Virtue, JLL Senior Analyst, Retail Research, told Connect CRE.
The report indicated that parents earning over $50,000 don’t plan to cut their back-to-school budgets. However, those earning less than $50,000 will cut their budgets by 18%, on average.
Surprise #2: On-Site Appearances
Virtue, one of the report’s co-authors, said it was also remarkable that much shopping would occur in physical stores.
“Where we’re seeing increases are with malls, in-store pickups and curbside pickup,” Virtue said. “Part of it is that shoes and clothing are better to buy in person because kids can try them on to ensure they fit properly.”
Another reason for an increased reliance on bricks-and-mortar for shopping is avoiding shipping costs and delivery delays. “Another interesting point, though it’s a smaller percentage, is that more parents enjoy shopping in-store than online,” Virtue commented.
The report explained that more parents are planning to head to the malls for back-to-school shopping and are also increasing their visits to office supply stores.
“Anecdotally, I’d say that office supply stores are comparatively better at fulfilling all the school-required lists and doing so at a lower cost,” Virtue said. She said that Dormify, the major college dorm supply brand, partnered with OfficeDepot this year, which should also help boost school sales.
Surprise #3: An Earlier Start
Finally, many parents have already started their back-to-school shopping—some beginning as early as May. This was a trend among higher-income families. However, lower-income families indicated they’d likely wait to do their shopping in July when sales are more common. The report noted that some families are also waiting to take advantage of sales connected with tax-free, back-to-school savings.
Because of this, “curating back-to-school merchandise right away for those early birds is important,” Virtue said.
