Consumer Behavior

Big growth forecast for back-to-school sales

Photo by istock.com

June 27, 2022

Back-to-school sales, in the U.S., is projected to grow 7.5% this year, not including automotive, compared to the same time frame in 2021.

That's a prime finding of a Mastercard SpendingPulse report measuring in-store and online retails sales across all forms of payment.

The BTS season is from mid July through Labor Day and sales are projected to increase by 18.3% compared to pre-pandemic 2019, according to a press release on the report findings.

"Back-to-school is the second biggest season for retailers and is often looked at as an early indicator of retail momentum ahead of the traditional holiday season," Steve Sadove, senior advisor for Mastercard and former CEO and chairman of Saks Inc., said in the release. "While Mastercard SpendingPulse anticipates growth across sectors, retailers will need to find innovative ways to entice shoppers as discretionary spending potentially stretches thin as a result of increasing prices."

Additional retail trends for the 2022 back-to-school season include:

• The in-store experience: Shopping for back-to-school becomes an experience of its own. From needing to try on new sizes to wanting to browse the latest fashions in person, the return to stores is expected to grow 8.2% YOY/9.9% YO3Y this season.
• Department stores continue their rebound: Following a multi-year decline, department stores have made their way into the spotlight after 15 consecutive months of sustained growth. Serving as a one stop shop with a range of options for the whole family at a variety of price points, the back-to-school season is anticipated to drive the department store sector up 13% YOY/27.3% YO3Y.
• Social calendars drive apparel growth: More gatherings require more looks. With weddings, events and vacations lined up for the foreseeable future, the demand for apparel both in-store and online sees no signs of slowing.