U.S. back-to-school spending expected to be moderate

AI return on investment customer service technology back-to-school spending retail sales trends consumer spending

Back-to-school shopping is expected to be “moderate at best,” according to a report from Circana. While total spending may be influenced by pricing, unit demand remains low as consumers prioritize essential items like school supplies and technology over discretionary goods.

Data indicates that retail sales revenue decreased 1% year-over-year in July, with unit sales dropping 2%. Growth is increasingly concentrated among higher-income consumers, as many shoppers are practicing careful prioritization rather than expanding their overall spending.

Financial pressures are also impacting household behavior. According to Omnisend, approximately 40% of parents expect to feel more financial stress during this back-to-school season compared to 2025. Consequently, 45% of U.S. households plan to utilize “buy now, pay later” financing for these purchases, an increase from 39% the previous year.

Entities

Circana · Gartner · Target

Sources

Only one-quarter of AI customer service use cases produce ROI [www.customerexperiencedive.com]

29 days ago

Back-to-school spending could be ‘moderate at best’ [www.retaildive.com]

29 days ago