The National Retail Federation expects total back-to-school and college spending to top $126 billion this year. It breaks down to $39 billion for K-12 household spending and $87 billion for back-to-college spending.
While the overall inflation rate has eased, the federation’s chief economist Jack Kleinhenz says it remains a key household issue.
“Overall prices are about 20% higher than they were back in 2019, and people have good memories of only a few years ago. And they were paying much less for goods and services. They have to prioritize, they have to be more selective,” he said during a webinar on Tuesday. “Of course, much of consumer spending is on services and that's where we still see inflation still being propped up. Although that's coming down, it's still becoming a problem for many, many households.”
The group’s annual survey finds the average back-to-school household will spend $875, while back-to-college shoppers are expected to spend $1,365 on average.
Katherine Cullen, vice president, National Retail Federation, said their survey found 65% of respondents started shopping early for the same reason.
“Consumers are spending more on these occasions and they want to layer that spend through multiple paychecks and over a longer period of time,” she said.
Cullen said nearly half of consumers report shopping early because more retailers are advertising sales in July.
