Most store shelves are better stocked this year for back-to-school shoppers, but the sticker shock is another matter.
Last year, pandemic-induced snarls in the supply chain made it harder to find such items as backpacks and sneakers. This year, even though supply-chain problems persist, stores seem to be well-stocked.
But high energy prices and the fastest-rising inflation rates in decades are driving up costs overall.
Colorado parents expect to spend $724 per child on school gear and clothes, 10% above the national average, according to a new survey by Deloitte. The survey of 400 parents found that 41% anticipated spending more than in 2021 and 61% said prices are higher this year.
“Parents will experience sticker shock on clothing, sneakers and school supplies this year,” said Patrick Penfield, a professor of supply chain practice at the Whitman School of Management at Syracuse University.
Penfield said shoppers are seeing jumps of 7% to 8% in prices. Clothing costs are as much as 18% higher.
“Parents will also see shrinkflation, where they will be getting less of the school supplies that they purchased at the same cost they paid last year,” Penfield said.
Kids who eat school lunches could notice a shortage of some items, including mustard, Penfield said.
Parents are concerned about inflation and about 61% of the Colorado respondents think the economy will weaken in the next six months, said Rod Sides, global leader for Deloitte Insights. But he said they are determined to send their children to school with what they need
A Deloitte survey on college spending found that people are dipping into savings or using more credit cards than they have in the past to buy supplies.
More than two-thirds of Colorado shoppers expect to have trouble finding the specific product they’re looking for, but are willing to try different brands.
A survey of the National Retail Federation and Prosper Insights and Analytics found that 38% of consumers are cutting spending in other areas to buy supplies for the upcoming school year. Nationally, back-to-school spending is expected to match 2021’s record $37 billion, according to the federation.
Colorado shoppers told Deloitte they plan to spend about 18% more on clothing than they did last year and about the same amount on technology. People didn’t buy as many clothes when children were doing classwork at home or a combination of home and in person work, Sides said.
“During the pandemic, we found folks were really buying a lot of tech, shoring up tech in the home to make sure the kids could get online,” he added.
The COVID-19 pandemic has affected shopping habits in another way, Sides said. Approximately 49% of Colorado parents said they are concerned about their children’s mental health because of pandemic-related pressures. Sides said those parents are more likely to pay for programs or items, such as art or sports supplies, to give kids a chance to get away from the grind of classes and connect with others face to face.
And people are doing more of their shopping in person, Sides said. Roughly 49% of the Coloradans surveyed said they will go to stores, compared with 43% in 2021. Another 35% said they’ll shop online, compared with 39% last year.
Catholic Charities of Denver is one of the organizations that helps families send their children to class with what they need. Metro-area churches are collecting supplies to fill 700 backpacks for low-income families or those experiencing homelessness. The backpacks will be distributed next week.
“We’re really optimistic that we’ll be able to get enough for everyone, which is extremely helpful this year given that, as with a lot of things, a lot of school items are more in price,” said spokeswoman Nissa LaPoint.
Grandparents and other relatives who are taking care of children are finding it tougher to cover costs since the price of gas and groceries have gone up, said Carrie Savage, director of the Kinship Caregiver Program at Catholic Charities.
“It’s hard when you want to have a nice backpack or you want to have the supplies that you need and sometimes families can’t afford that,” Savage said.
