Back-to-school shoppers hit the books in search of value

It comes every year, regardless of economic uncertainty — back-to-school shopping. Soaring prices for gas and other goods continued to pinch families’ budgets as they prepared to send their little ones off to school. Many families were waiting for the best deals or planned on spreading out their back-to-school spending, according to the annual back-to-school survey from the National Retail Federation. The report showed nearly half of back-to-school shoppers were still waiting for the best deals in mid-July. Nearly a quarter said they planned to spread out their spending. “Affordability is a concern for families and a top priority for retailers as we enter the back-to-school season,” said Mark Mathews, NRF’s chief economist and executive director of research, in a July press release. “Shoppers are keeping value front and center as they look for ways to make their dollars go further,” he said. Mathews added that retailers are responding with assorted products, promotional events and more convenient shopping options. The survey expected K-12 spending to reach $43.4 billion this year. Retailers have reported mixed results on the annual shopping season. “The economics are challenging for families,” said Stacy Shaffner, vice president of merchandising at Fred Meyer. But the retailer has gotten positive feedback from customers. Fred Meyer offered 250 back-to-school items priced under $5, “making it easier for them to afford essentials without sacrificing quality and selection.” Shaffner said customers seem to be gravitating into more value-based items. Families are making fewer shopping trips but their baskets have more items, she added. “So they’re trying to balance the fuel pricing along with getting the items that they’re looking for, and I think that’s why it’s important for us,” she said. The company earlier this year began allowing customers to use reward points not just for fuel discounts but for groceries. At JD Sports, one of the newest tenants at Vancouver Mall, back-to-school business has been strong. The retailer sells sneakers and sportswear, popular staples in teenage closets. The store has already brought in about $100,000 more in sales this year to date than it projected. “We’ve been exceeding plans on a daily basis,” said Jay Simmons, store manager for the location. “Back-to-school has actually been really crazy.” Simmons said the store has seen several products become scarce. Families, he added, are coming in and buying multiple products — more than the team expected. That experience hasn’t been universal, however. Other retailers reported families were buying just one product per child. Sales are better than last year, said Caitlin Clark, a manager at Hollister Co. at Vancouver Mall. Fewer people are coming into the store, but those coming in are buying a decent amount. Most are sticking to basics like jeans and T-shirts and buying fewer statement pieces, Clark said. Walmart reported weak sales during its latest financial report released last month. But CEO David Guggina assured investors the back-to-school season is where Walmart shines. “Walmart sells roughly 50 percent of total industry school supplies from a unit standpoint over the season, and we’re very pleased with where we are at this point in the year,” Guggina said during the company’s Aug. 20 investor call. Guggina told investors the company has a list of 14 back-to-school items priced lower than they were in 2019. “Those prices are resonating with customers, and we’re seeing it in traffic, ticket and unit volume all growing,” Guggina said. Cara Sylvester, chief merchandising officer at Target, said in that company’s Aug. 19 investor call that 95 percent of Target’s back-to-school supplies were priced at or below last year’s prices. Back-to-school and college shopping is one of the brand’s biggest shopping seasons, Lisa Roath, Target’s chief operating officer, said during the investor call. Target Chief Financial Officer Jim Lee said the company plans to continue lowering prices “to drive incremental value for our guests.” Shaffner said Fred Meyer aims to emphasize affordability throughout the season, offering things like 10 percent discounts for teachers through Sept. 11 and weekly digital discounts. “That’s what’s really going to help all of our customers through really the third and fourth quarter,” she said.

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