What's Happening?
A recent survey conducted by Bread Financial indicates that a significant portion of back-to-school and back-to-college shoppers are planning to spend the same amount or more than last year, despite new tariffs on imported goods. The survey reveals that 53% of shoppers intend to maintain their spending levels, while 39% plan to increase their expenditure. The primary drivers for increased spending include rising prices and the advancing educational needs of students. Inflation continues to be a major concern, with 86% of respondents acknowledging its impact on their spending plans.
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Why It's Important?
The survey highlights the ongoing financial pressures faced by consumers, particularly in the context of back-to-school shopping. Rising costs due to inflation and tariffs could lead to increased financial strain on families, potentially affecting their ability to purchase necessary educational supplies. Retailers may need to adjust their strategies to accommodate these consumer concerns, possibly by offering more promotions or discounts. The data also suggests a shift in payment methods, with a notable increase in the use of pay-over-time platforms, indicating a growing reliance on alternative financing options.
