Early onset of back-to-school shopping spree as households aim for savings amidst financial insecurity
In the lead-up to the 2025 academic year, families are adopting strategic shopping behaviours to navigate tariff-related price increases on common back-to-school items such as clothing and electronics. According to recent data, families with elementary-to-high-school-age students are projected to spend an average of $858.07 on back-to-school items, a slight decrease from $874.60 in 2024.
This cost-conscious approach is evident in the shopping habits of K-12 families, who plan to budget an average of $295.81 for electronics, $249.36 for clothing and accessories, $169.13 for shoes, and $143.77 for school supplies. The trend continues among college shoppers, with an average expected spend of $1,325.85, a decrease from $1,364.75 in 2024.
The most popular shopping destinations for K-12 families remain online, department stores, discount stores, and clothing stores. However, the strategic focus on cost reduction has led 39% of shoppers to pick different brands and 35% to choose different retailers to manage costs. Furthermore, 27% plan to cut back on clothing purchases and 25% on school supplies.
Tariffs remain a significant concern, impacting pricing for back-to-school essentials. As a result, shoppers are waiting for sales (52% plan to do so) and using coupons (34%) to mitigate higher costs. This cost-conscious behaviour has led to a shift towards thrifting and sustainability trends, especially among younger shoppers who embrace upcycled fashion and secondhand purchases.
Popular items in 2025 include customizable backpacks, stylish accessories like Labubus keychains, eco-friendly clothing, smartwatches for kids (e.g., Gizmo Watch), and trendy footwear such as Birkenstocks and Crocs with charms.
The prevalence of card payments and the push to shop sales and use coupons suggest consumers are sensitive to pricing pressures, potentially reflecting indirect effects of swipe fees on retail pricing. Swipe fees, or merchant fees charged on credit/debit card transactions, are expected to cost the average family an additional $20 to $30.
To address this issue, retailers are partnering with the Merchants Payments Coalition to ask Congress to pass the Credit Card Competition Act (CCCA) to lower transaction fees. The CCCA aims to increase competition in the credit card processing market.
It's worth noting that the Kentucky Retail Federation, a non-profit trade association representing diverse businesses across the Commonwealth, is not mentioned as being involved in the push for the CCCA. The website for the Kentucky Retail Federation is kyretail.com.
The top destinations for college families are online, discount stores, department stores, and college bookstores. College shoppers expect to spend an average of $309.50 for electronics, $191.39 for dorm or apartment furnishings, $166.07 for clothing and accessories, $140.24 for food, and $117.95 for personal care items.
A survey conducted by the National Retail Federation found that 67% of consumers started back-to-school shopping by early July, an increase from 55% last year. This early shopping trend suggests that families are proactively managing their back-to-school budgets in response to tariff-related price increases.
In summary, the 2025 back-to-school shopping season is characterised by careful price sensitivity due to tariffs, strategic buying behaviours focused on deals and alternative brands/retailers, and evolving preferences towards stylish, sustainable, and tech-savvy products, with average family spending being moderated accordingly.
- Families in Kentucky, aware of the impact of tariffs on their personal-finance, are adopting strategic shopping behaviors, like waiting for sales and using coupons, to manage costs associated with back-to-school items.
- The business of retail, especially in Kentucky, is experiencing change, as retailers are partnering to lobby for the Credit Card Competition Act (CCCA) to lower transaction fees, in response to the rising swipe fees that increase family expenses.
- Amidst the back-to-school shopping surge for 2025, there's an apparent shift towards lifestyle choices that prioritize sustainability, as evidenced by the growing popularity of upcycled fashion, secondhand purchases, and eco-friendly clothing among shoppers.
