A Confusing Back-To-School Season May Lead To Blockbuster Spending | KGOU
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A Confusing Back-To-School Season May Lead To Blockbuster Spending

Aug 27, 2020
Originally published on August 27, 2020 12:05 pm

Getting her daughter ready for the first day of sixth grade, in a normal year, Lidia Rodriguez would have by now spent a pretty penny on a lunchbox, her charter-school uniform and a special backpack, perhaps embroidered with her name: "Sofia."

But why buy a new uniform if last year's top still works for a Zoom call? And why splurge on a new backpack when the walk to school is a shuffle from the kitchen table to the bedroom desk?

"I don't feel like investing ... until she actually physically starts," says Rodriguez, whose home in Tampa will be her daughter's classroom at least for nine weeks.

Rodriguez still did buy supplies: notebooks and folders, pens and pencils. Sofia's father got her a laptop. And she'll need more when — and if — she returns to the classroom: three masks a day, bleach wipes, new shoes, the uniform.

If lots of families end up having to stock up for multiple scenarios — both learning in school and virtually — back-to-school and back-to-college spending could actually hit a new record, topping $100 billion, according to the National Retail Federation.

Big-ticket items like electronics and desks are a major reason, says Katherine Cullen, senior director for industry and consumer insights at the retail group.

"Families who last year might have been looking at calculators or maybe a new smartphone ... are now looking at bigger dollar items like laptops, tablets, desktops," Cullen says. "But they're also buying things that you might not expect as much — desks, lamps, headphones — a lot of new items that weren't traditionally on the school shopping list."

Back-to-school is usually the second-biggest shopping season after the winter holidays. And so it's something of a test for retailers, who are in a tailspin from the year's mass shutdowns, layoffs and furloughs.

"The back-to-school season is off to a slower start than usual, given the uncertainty around the timing of students physically returning to school," Walmart Chief Financial Officer Brett Biggs said on a call with analysts last week. He pointed out "understandably" low demand for school supplies, backpacks and clothes. "We expect the season to be choppy and come later than normal," Biggs said.

Retail marketers have been getting creative to keep people spending, embracing the oddity and disarray of pandemic schooling, pushing discounts on computers and ideas for faking a dorm room at home.

Macy's showed a montage of children at home learning to build a robot or tend to a garden. "New school year, whatever that means," sang a women in an Old Navy commercial. Target promoted contactless pickup of online orders. Even Ace Hardware got in on the pitch: Now that face masks and disinfectants are on the list, why not stock up for school at a home improvement store?

"The biggest priority for me this year was setting up the home workspace," says Kisha Washington, who in the spring had to convert her Chicago home into both her office and a classroom for her daughter, now a high school junior. This meant a mounted computer monitor, good speakers and new task lighting.

That "morphed into her wanting task lighting plus tea-light-patio-hanging-from-the-ceiling-random-LED-lighting," Washington says with a laugh. "So she's also taking this opportunity to, you know, redecorate — which has been good for her."

Both Washington and Rodriguez would have to buy more supplies if or when their children actually return to the classroom. By Cullen's estimate, families like theirs still have about 60% of their back-to-school shopping left to do. The question is when or how much of it will actually happen.

Copyright 2020 NPR. To see more, visit https://www.npr.org.

STEVE INSKEEP, HOST:

Back to school shopping is different this year. What's the point of a new backpack when the walk to school is a shuffle from the kitchen table to a desk in the bedroom? Though retailers are in a tailspin from the pandemic shutdowns, this year's uncertainty could bring them some good news. NPR's Alina Selyukh reports.

ALINA SELYUKH, BYLINE: Normally, Lidia Rodriguez would've spent hundreds of dollars to get her daughter ready for the first day of class - that's on her school uniform alone.

LIDIA RODRIGUEZ: And this year, she's just wearing a top for her Zoom meetings. So she's just wearing last year's - that barely fit. But I don't feel like investing another $300 on uniforms until she actually physically starts.

SELYUKH: Her daughter, like many other students around the country, started sixth grade without actually leaving their home in Tampa. So Rodriguez says her spending felt really minimum. But it's not like she could skip it altogether.

RODRIGUEZ: I did buy the school supplies, you know, like the notebooks and the folders and the pens and pencils, binders and all that.

SELYUKH: And here's a curious thing, the retail world is actually hoping for strong back-to-school spending. The retail trade group even predicts record highs, potentially topping $100 billion for school and college. That's because parents, like Rodriguez, might end up having to stock up for multiple scenarios in case students learn in-person, virtually or a bit of both, which also means they're buying more big-ticket items.

KATHERINE CULLEN: We're seeing more families purchasing electronics.

SELYUKH: Katherine Cullen is a senior director at the National Retail Federation. They've been tracking big changes to what's in demand - backpacks and new shoes, not so much. Instead, enter comfy home clothes and cleaning supplies and especially pricey electronics - this year's big sellers - laptops, tablets, speakers.

CULLEN: But they're also buying things that you might not expect as much - you know, desks, lamps, headphones - so a lot of new items that weren't traditionally on the school shopping list.

SELYUKH: And so retail marketers had to get creative to keep people shopping in a year of mass layoffs and furloughs. Amazon, Walmart, Old Navy embraced the oddity and disarray of pandemic schooling.

(SOUNDBITE OF MONTAGE)

UNIDENTIFIED CHILD: This year, I get to do kindergarten with dad.

UNIDENTIFIED PERSON #1: However you go back, we've got your back.

UNIDENTIFIED PERSON #2: (Rapping) New school year, whatever that means...

SELYUKH: Macy's did a montage of kids at home learning to build a robot or tend to a garden. Even Ace Hardware got in on the pitch. Now that students have to bring masks and disinfectants to school, why not stock up for back to school at a home improvement store?

KISHA WASHINGTON: The biggest priority for me this year was setting up their home workspace.

SELYUKH: Kisha Washington did much of her spending back in the spring. As both she and her daughter adjusted to working from their home in Chicago, Washington set up her high school junior with a mounted computer monitor and a good sound system, later installing new task lighting.

WASHINGTON: Which morphed into her wanting task lighting plus tea-light-patio-hanging-from-the-ceiling-random-LED lighting. So she's also taking this opportunity to, you know, redecorate.

SELYUKH: Both Washington and Rodriguez would have to buy more supplies if or when their children actually return to the classroom. By one estimate, families like theirs still have about 60% of their back-to-school shopping left to do. The question is, when or how much of it will actually happen?

Alina Selyukh, NPR News. Transcript provided by NPR, Copyright NPR.