Just when families start to get into the swing of summer, it's time to get ready to return to school. It's never too early to start planning and making a list of everything needed. The National Retail Federation (NRF) has released new information on back-to-school spending.
According to the NRF, families with elementary and high school children plan to spend an average of $864 on school items. That's about $15 more than last year, which adds up to $37 billion. That's in line with last year's numbers.
College students and their families expect to spend around $1,200 on average for this school season, totaling $74 billion for college spending, a $3 billion increase from last year.
What are families buying for their students?
The NRF found that the top categories for K-12 shoppers are electronics and clothing. Total spending on electronics will reach around $13 billion this year, and total spending on clothing and accessories comes in a close second at $11 billion.
One of the lessons learned by retailers after the COVID-19 pandemic has been to stock their inventory earlier to protect against potential supply chain delays and slowdowns at the ports.
The challenge for retailers is predicting whether parents will buy less clothing and sneakers when the cost of necessities - such as pencils, notebooks, and laptops – is difficult for many household struggling with higher prices due to inflation. According to U.S. Commerce Department data, purchases of clothing and shoes have fallen since January.
Sales Tax Holidays
A sales tax holiday is a limited-time period where a state allows sales tax to be waived or reduced on categories of items. These holidays are short in duration and are limited to the items listed.
States have a variety of sales tax holidays, including children's diapers tax holiday, severe weather tax holiday, and even freedom summer sales tax holiday, which includes fishing and camping supplies, children's toys, athletic equipment, and boating and pool supplies. This year 16 states will offer no sales tax on school supplies, with parents spending approximately $300 per child.
If you'd like to increase your inventory or create a special back-to-school promotion, Quikstone can help.
Since 2005, Quikstone Capital Solutions has assisted thousands of merchants with the working capital they need to grow their businesses. Merchants can use Quikstone Capital for all their business needs, including purchasing new equipment, hiring staff, increasing inventory, expanding, or remodeling. If you accept credit cards, you could qualify for up to $250,000. It's a quick and easy process. There is a simple application, no collateral is needed, and funds are available in 2-5 business days. Contact us today to learn more.
