Inflation, tariff concerns push families to start back-to-school shopping early
Although inflation is cooling, President Trump's new tariff rates are threatening to drive prices higher.
That could lead to higher prices on back-to-school essentials like backpacks. Concerns about prices and the overall economy are changing how parents shop.
It isn't even the midpoint of summer break, but Andrea Cuneo of Bloomington has already tackled back to school shopping for her two kids.
"Except for shoes, I'll let the kids pick out their shoes and then we're good to go," Cuneo said.
According to a report by Coresight Research, 62% of shoppers say they'll begin back-to-school shopping before August, up over 8 percentage points from last year.
Coresight's John Mercer say shoppers are seeking deals and value for money, while preempting tariff-driven price increases down the line.
"Tariffs have gone up, even if deals are struck. The baseline of tariffs has gone up. More tariffs are due to come in on August 1, and the flow through to prices is really only going to be upward from tariffs," said Mercer.
Angela Ryan of Otsego is focusing on comparison shopping.
"I wanted to make sure I was getting the lowest price. With two kids, when you have to buy four sets of markers or four sets of crayons of my fifth-grader needs a special case for all of her stuff at school, I want to make sure I'm paying the lowest price," Ryan said.
Cuneo is also saving money by assessing what they already have.
"We try to reuse backpacks. I don't need a new one every year unless it's worn out," she said.
Even with parents' financial concerns, Mercer expects back-to-school spending will be up 3.3% compared to last year.
"We think higher income consumers will drive retail growth. We think low income consumers will be much more cautious. Low income consumers, some of them will be hit by changes to SNAP, to Medicaid. And higher income consumers stand to benefit the most from income tax gains from the 'big, beautiful bill,'" he said.
Another reason for earlier back to school shopping is Amazon Prime Day. About 40% of Prime Day shoppers used it for those items this year.
