Preparing to start classes is significant to the student's needs and the economy. This article should explore how students shop for the start of the school year.
As the start of a new school year approaches, students and families nationwide are busy preparing to have an impactful academic year.
Through proper planning and preparation, not only can students ensure a smooth start, but they can also give a much-needed boost to our economy.
Shopping for back-to-school items is one of the most crucial steps in preparation. Stores are full of notebooks, pencils, calculators, and other materials students will require in the coming school year - from clothing to computers - now is an essential time for families to be wise with their spending!
This article will examine the economics behind back-to-class trends to give you the skills you need to effectively navigate one of the costliest seasons each year. Furthermore, you'll discover that the back-to-school season boosts our economy even with all the costs involved.
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Retail Boom: Who Benefits Most In-Store or Online?
As households spend money on tuition fees, school books, and associated equipment like webcams, keyboards, and bags during back-to-school season, the retail sector experiences a substantial surge.
Households must spend money on tuition fees as well as textbooks.
Also popular among families are laptops and tablets to help with educational use - these also require investments in tuition fees and tuition books!
But where are people purchasing their goods for back-to-school season? Online retailers like Amazon or Etsy may offer convenience, or for something more human touch, seek department store discounts for new school uniforms. Let's analyze this data below for insights.
Where are consumers shopping?
Here is where consumers are expected to shop during the back-to-school season, with the percentage of consumers making purchases in each type of store displayed afterward.
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Back to School |
Back to College |
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55% of the parents will shop online for the return to school of their kids. In a technical tie 45% of the surveyed mentioned discount and department stores. When it comes to specialty stores, 41% said they will shop in clothings stores, 23% in electronics stores and 21% in office supply stores. Where are parents shopping for B2S?
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49% of consumers will shop online to find what they need for the return to school season. While close to a third of people will shop at department stores (35%) and discount stores (33%). Bookstores and clothing stores will host about a quarter of consumers, while 18% of people visiting electronic stores also. Where are consumers shopping for B2C?
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As you can see, online stores still dominate retail sales, even during the return to school periods. However, department, discount, specialty and local stores still make up a significant proportion of shoppers for the new school year.
Shifting Spending Habits of Parents and College Students
Some expenses associated with back-to-school are given; new shoes and shirts, books and stationary, etc. However, many households overlook other expenditures leading to a new school year.
Get ready to break the bank this year as consumers gear up for an epic back-to-school and back-to-college shopping spree, smashing all previous spending records! Back-to-school spending is projected to reach $41.5 billion, surpassing last year's total of $36.9 billion and the previous record of $37.1 billion in 2021.
Back to school:
| Concept | Percent buying | Per household spending | Total spending |
| Electronics or computer | 69% | $325.96 | $15.2B |
| Clothing and accessories (excluding shoes) | 95% | $257.12 | $12B |
| Shoes | 94% | $166.59 | $7.8B |
| School Supplies | 96% | $140.39 | $6.5B |
Source of data- ( NRF)
Back to college
As students head back to college, the spending associated with the start of the school year is expected to reach an all-time high.
According to NRF, total back-to-college expenditures are projected to hit $94 billion this year, approximately $20 billion higher than last year's previous high.
Check out the table below to see the expected back-to-college spending:
| Concept | Percent buying | Per household spending | Total spending |
| Electronics/ Computer-related equipment | 68% | $336.65 | $23.2B |
| College dorm essentials/apartment furnishings | 61% | $190.80 | $13.1B |
| Clothing & Accessories | 86% | $182.39 | $12.5B |
| Food items | 81% | $151.54 | $10.4B |
| Personal care items | 86% | $114.48 | $7.9B |
| Shoes | 81% | $112.81 | $7.9B |
| Gift Cards | 51% | $104.75 | $7.2B |
| School supplies | 92% | $95.03 | $6.5B |
| Collegiate branded gear | 64% | $78.79 | $5.4B |
Source of data- ( NRF)
Increased Prices Cause Increases in Spending
As tuition and fees continue to rise, so does spending associated with back-to-school. This increase can be partially attributed to increased textbook prices, clothing, and other essential school essentials that increase over time.
Due to rising costs associated with college and kindergarten tuition costs, families sending their children off are experiencing more significant financial strain. To help ease that stress, here are some top tips on saving money during this season:
Top Tips for Saving Money
To survive the inflation-induced squeeze of this year's new school year, keep these top 5 tips in mind to keep your costs as low as possible:
- Take advantage of coupons and discounts - Online retailers often offer discounts to encourage customers to shop with them, so take the time to look for these before making any purchases.
- Shop for the best prices - Compare prices online across multiple stores for the best deal. Also, check out thrift shops, discount stores, and large retailers offering discounts during the back-to-school season.
- Buy items in bulk - Some stores offer discounted prices on bulk purchases, which can help you save money in the long run for upcoming school years.
- Make a list before you go shopping - Making a list will help you stay focused and ensure that you don't buy anything unnecessary or overspend your school spending budget.
- Avoid high-ticket items- Expensive items like a new tablet or laptop can significantly impact your back-to-school budget. If you are tight on cash, maybe you should get your old laptop repaired or wait until next year to make a purchase.
Understanding the Unique Economics of Back-to-School Season
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After reading this article I hope you’ve realize the significance of making sound choices when planning your back-to-school spending.
School periods benefit the economy and the routine for students attending classes provides a better organization of population behavior.
Back-to-school shopping requires students, parents, and teachers to make intelligent financial decisions when purchasing products.
Searching for deals on large purchases such as textbooks or furniture, as well as smaller purchases like apparel and school supplies, will save money and time in making an intelligent investment decision.
Back-to-school season has an enormous economic effect. Both online and in-store retailers experience an upswing in sales as people purchase everything they need for the new school year - something retailers worldwide will welcome with open arms in today's uncertain economic climate.
