**Inflation Concerns Don’t Dampen Back-to-School Budgets**
As the back-to-school season begins, teachers are preparing their classrooms, and families are busy purchasing supplies and outfits for their children. Retail activity around this time often intensifies, and this year is no exception. According to JLL’s Back-to-School Shopping Survey, nearly half of respondents began their shopping efforts before June—a sign that the season continues to start earlier each year.
Interestingly, despite persistent inflation concerns, parents are not holding back. On average, they plan to spend 17.3% more than they did during the previous school year. However, that doesn’t mean they’re spending without caution. One-third of parents surveyed indicated they’ve adjusted their shopping plans due to rising prices, indicating a careful strategic approach to spending.
Back-to-school shopping behavior also varies widely by income group. Families from lower-income households are predicted to spend 22.5% less than the average. They are more likely to begin shopping later, in July or August, and are increasing discretionary spending. In contrast, higher-income households tend to shop earlier, often before June, are spending more overall, and are choosing private-label products to stretch their dollars further. At the same time, they are reducing their discretionary spending.
The survey revealed additional key trends:
**Increased In-Store Shopping**
While online shopping and home delivery remain popular, there has been a noticeable shift back to physical retail. Malls and open-air shopping centers are seeing increased foot traffic. Buy online, pick up in-store (BOPIS) and curbside pickup options have decreased slightly in popularity compared to the previous year.
**Rising Popularity of Mass Merchandisers**
Retailers like Walmart and Target have experienced a nearly 10 percentage point increase in popularity among back-to-school shoppers. An estimated 11.3% of parents plan to shop exclusively at these mass merchandisers, underscoring a continued focus on value and affordability.
**Recommendations for Retail Landlords**
To capitalize on heightened back-to-school activity, JLL analysts suggest that retail property owners consider:
– Offering sales and promotions to increase foot traffic.
– Promoting affordable store-brand alternatives or reducing premium product stock.
– Ensuring back-to-school items are located close to pickup areas for added convenience.
Even though the appeal of BOPIS has waned somewhat, maintaining easy and efficient pickup options remains a good strategy to capture the interest of time-strapped shoppers.
While economic uncertainty remains, families are still investing in their children’s education, and back-to-school shopping continues to be a critical retail moment each year. Strategic planning—both for families and retailers—will be key to navigating the season successfully.
