Shopping for school essentials begins prematurely as families aim for discounts due to economic instability
In the midst of rising tariffs and inflation, families are adjusting their back-to-school shopping strategies. According to a survey conducted by the National Retail Federation, the average planned spending for college students is $1,325.85, while families with K-12 students are forecast to spend an average of $858.07 on school-related items.
The increase in early back-to-school shopping in 2025 is primarily driven by consumer concerns over tariffs and inflation. More than half of survey respondents are shopping earlier due to these concerns, with 67% of shoppers having started buying by early July 2025, the highest level since the NRF began tracking early shopping in 2018.
Families are budgeting carefully and seeking discounts amid economic uncertainty and tariff anxiety. The average planned back-to-school spending per family is about $858, which is slightly down compared to previous years, reflecting tighter budgets and careful prioritization. Many consumers are spreading out their purchases, waiting for deals, or opting for used/refurbished items.
Tariffs on imports from China and other countries have led retailers to stockpile products early to avoid paying higher duties later. This has created a supply-chain dynamic where some prices have risen sharply, then moderated but remain historically high. Retailers like Target are responding by holding prices steady on certain essentials to help families manage costs, and offering targeted discounts for college students and teachers.
The most popular back-to-school shopping destinations for K-12 families are online, department stores, discount stores, and clothing stores. College families, on the other hand, prefer online shopping, discount stores, department stores, and college bookstores.
For more information about retail trends in Kentucky, visit the Kentucky Retail Federation's website at kyretail.com. The Merchants Payments Coalition recently reported that "swipe" fees will drive up the price of school/college shopping by a total of $3 billion in 2025. To address this issue, the Credit Card Competition Act (CCCA) is a proposed legislation aimed at increasing competition in the credit card processing market to lower transaction fees. Retailers are partnering with the Merchants Payments Coalition to ask Congress to pass the CCCA.
In summary, tariff-related concerns have shifted back-to-school shopping earlier, fueling cautious but proactive consumer behavior. Retailers are balancing inventory strategies and pricing tactics to maintain affordability and compete for value-conscious shoppers amid inflationary pressures and ongoing tariff effects.
- K-12 families and college students in Kentucky are adjusting their back-to-school shopping strategies due to tariffs and inflation, with consumers opting for early shopping and carefully budgeting their personal-finance.
- As a response to these economic concerns, retailers like Target are offering targeted discounts for college students and teachers, while holding prices steady on essential items to help manage costs.
- To combat the expected increase in 'swipe' fees in 2025, which could amount to $3 billion in additional costs for school and college shopping, retailers are partnering with the Merchants Payments Coalition to request Congress to pass the Credit Card Competition Act (CCCA), aiming to lower transaction fees and increase competition in the credit card processing market.
