**Inflation Concerns Don’t Dampen Back-to-School Budgets**
As the back-to-school season approaches, teachers are preparing their classrooms and lesson plans while families gear up to purchase school supplies and clothing. This annual tradition also raises questions about consumer spending patterns—and according to a recent survey by JLL, parents are kicking off their shopping season earlier, with nearly half of respondents having started their purchases before June.
Surprisingly, inflation isn’t stopping parents from spending. The survey found that families plan to increase their back-to-school budgets by an average of 17.3% compared to last year. However, while overall spending is on the rise, parents are strategically adjusting their expenditures in response to inflation. About one-third of respondents indicated they would modify their shopping plans due to higher prices.
Spending patterns also differed across income levels. Lower-income households are expected to spend about 22.5% less than the overall average, tend to begin shopping in July or August, and are increasing their discretionary purchases. Conversely, higher-income households are expected to spend more, but make more cost-conscious decisions, such as buying private-label products, reducing discretionary spending, and starting their shopping earlier—often before June.
Key survey insights include:
**Trend Toward In-Person Shopping**
While online shopping and delivery remain popular, fewer parents are relying on them compared to previous years. As a result, shopping malls and open-air centers are seeing a resurgence in popularity. Additionally, services like buy online, pick up in-store (BOPIS) and curbside pickup have declined in use.
**Mass Merchandisers Gain Popularity**
Retail giants like Walmart and Target are receiving increased attention from budget-conscious parents. Their popularity grew by almost 10 percentage points this year, with over 11% of parents planning to shop exclusively at these mass merchandisers.
**Recommendations for Retail Landlords**
Based on these findings, JLL analysts suggest that retailers can capitalize on the back-to-school rush by:
– Offering in-store promotions and sales to drive foot traffic
– Promoting private-label and lower-cost product offerings
– Stocking fewer premium items during the season
Even though BOPIS services are less popular than before, landlords are still encouraged to maintain convenient pickup options and to merchandise school supplies close to designated pickup zones for added convenience.
Back-to-school shopping remains a critical time for both families and retailers, and this year it’s clear: despite inflation, parents are ready to invest in their children’s education—with smart, strategic decisions leading the way.
