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Back-to-School Season Should Give Retailers Big Boost



It’s that time of year again. The Summer season’s coming to a close, and kids are gearing up to head back to class. While this may or may not come as welcome news for students, there is a group who’s seriously excited about the back-to-school season. Can you guess who?

If you said retailers, you’re right. Experts have announced that this year’s back to school shopping rush is going to give American retail brands the boost they’ve been waiting for. Let’s look at some of the stats backing up this positive prediction:

A Sudden Turn-Around After A Decade’s Decline

2019 is expected to see a huge improvement in back-to-school sales. According to market analysts at Customer Growth Partners, this year’s school-centric purchases will rise by a strong 5.1%. This is the biggest jump in profit margins that US retailers have seen in the last 8 years. This is a ground-shaking development for the industry as a whole, and it doesn’t stop there.

What’s more incredible is the forecast’s spending threshold. American shoppers are expected to spend a handsome $616 billion on back-to-school supplies, clothing, and other accessories items. This is a record budget for school preparation, and it’s set to have incredibly beneficial effects on US retail.

More Jobs Mean Bigger Budgets

So what exactly is fueling this surge of spending? According to sources at Bloomberg, it’s the country’s recent increase in job opportunities. Wages are on the rise and the US has reached near-peak employment - all of which are contributing to the rising sale rates.

Recently, there have been nearly 2 million full-time jobs added to the US economy. Since the population is experiencing greater affluence, they’re able to participate in the back-to-school prep festivities.

On the subject, Customer Growth Partner’s President Craig Johnson notes, “This is the first time in over a decade that more than half, 50.6%, of working-age adults had a full-time job, up from 48% as recently as 2014.”

While the 2018 Holiday season left retailers disappointed, back-to-school is offering a promising turn around. “After a slow start due to the long winter, retail has inflected sharply up since mid-April and has hardly looked back.” Johnson adds, “This is the best momentum we’ve seen in eight years, and spans most retail sectors.”

These positive outlooks are set to provide a huge boost for retail, which has been standing on an unsteady ground during the last few quarters.

Big Box Stores Coming Out On Top

While sales are expected to spread throughout the country’s retail scheme, big-box stores will be the primary benefactors of 2019’s back-to-school spending-spree. The report states that big-box transactions will rise by 5.5%. Comparatively, health and personal care will see an increase of 4.7%, while apparel is only expected to see a 0.7% boost.

Another sector that’s anticipating a great turnout will be online sales, which are on track to see a 12% increase. E-commerce makes up for almost half of the overall back-to-school rush, with a supposed $13 billion rise in online sales.

Retailers, get ready - shoppers are coming, and they mean business. Stay updated on CRE’s latest developments, explore our blog!


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