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Retailers bank on robust back-to-school shopping as students return to classrooms

The neon rainbow playground ball is a top seller. Pop fidget pencil cases and journals sold out coast-to-coast in three weeks. Backpacks with dinosaur and mermaid prints are flying off the shelves.
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The neon rainbow playground ball is a top seller. Pop fidget pencil cases and journals sold out coast-to-coast in three weeks. Backpacks with dinosaur and mermaid prints are flying off the shelves.聽

Parents and kids are not only on the hunt for essential back-to-school supplies this year, but unique gear to help kids settle into a new routine, says Mastermind Toys CEO Sarah Jordan.

鈥淏ecause kids haven鈥檛 consistently been in school for the past two years, there鈥檚 a real need for gear to be replaced because it鈥檚 either outdated or they鈥檝e outgrown it,鈥 she said. 鈥淏ut back-to-school gear is also a form of expression and it鈥檚 more important this year than ever.鈥

Retailers are banking on a robust back-to-school shopping season as students prepare to return to in-classroom learning 鈥 many for the first time in more than a year. 聽

The lucrative spending period was sluggish last year as some parents opted to homeschool their children and many schools shifted to online learning.

But consumer spending is expected to be strong in the run up to schools reopening this fall.聽

Many parents and students began stocking up early, and sales of school-related supplies from lunch boxes to sneakers are projected to remain strong into September.聽

鈥淔or many retailers, back to school is a critical period second only to Christmas,鈥 said Retail Council of Canada spokeswoman Michelle Wasylyshen.

鈥淭his year back-to-school shopping should be huge compared to last year since schools will be returning to in-person at all ages.鈥

In the U.S., the National Retail Federation said consumers plan to spend record amounts for school supplies this fall.

Families with children in elementary to high school plan to spend an average of US$849 on school items, while post-secondary students and their families plan to spend an average of US$1,200, the trade association said.

The rosy sales projections are largely mirrored in Canada, with experts noting that the return to in-person instruction, the restart of many extracurricular activities and the return to the office should provide retailers with a big lift.聽

鈥淐onsumers are expected to spend significantly more than last year,鈥 said Markus Giesler, associate professor of marketing at York University鈥檚 Schulich School of Business.

鈥淚t鈥檚 not that surprising given more students are expected to return to in-person learning,鈥 he said. 鈥淏ut the uncertainty with the fourth wave could still impact sales.鈥

Statistics Canada said Aug. 20 that retail sales rose 4.2 per cent to $56.2 billion in June as public health restrictions were eased in many parts of the country.

While the agency said its preliminary estimate for July, which will be revised, showed retail sales fell 1.7 per cent, experts say traditional back-to-school categories like apparel appeared to do well.

Tamara Szames, Canadian retail industry adviser with The NPD Group, said early sales figures for the back-to-school period suggest fashion retailers will see double-digit growth over 2020 and single-digit growth compared to 2019.聽

聽鈥淛uly has been a really promising month for what we can expect to see for the back-to-school season,鈥 she said. 鈥淏ut the recovery story starts to overshadow this back-to-school season.鈥

Stores have been heavily promoting school sales this month, with mailbox flyers and online ads featuring everything from classroom supplies and apparel to electronics and dorm room essentials.聽

Many are offering classic doorbuster items to lure shoppers into stores, like a 29 cent pack of wooden pencils at Staples or an 88 cent box of coloured crayons at Walmart.聽

Retail observers say the aim is to get consumers through the door with steeply discounted items in the hopes they鈥檒l spend more on discretionary items and higher margin goods like backpacks, footwear and clothing.聽

鈥淎pparel is one of the stars at retail right now as we reopen,鈥 said retail analyst Bruce Winder.聽

鈥淲e鈥檙e really seeing apparel rocketing back up now, and that鈥檚 after seeing sales slip as much as 80 per cent during the height of the pandemic.鈥

Some stores are featuring masks and hand sanitizer as part of their back to school selection. John DeFranco, chief commercial officer of Staples Canada, said the store is featuring sanitation options alongside its usual school supplies.聽

Electronics remain a bit of a question mark, as many students and families already purchased new technology during the pandemic, retail experts say.聽

Yet some families appear to be buying cellphones for elementary and high school aged students in order to stay connected, they say.

鈥淭here might be a lot of parents interested in buying their children cellphones before the start of school,鈥 said Anwar White with McGill University鈥檚 Bensadoun School of Retail Management.

鈥淭hey didn鈥檛 need one last year because they were mostly home, but now they鈥檒l be apart more.鈥

Indeed, parental guilt about seeing children cope with pandemic restrictions for 18 months could give an extra boost to back-to-school shopping, he said. 聽

鈥淚 would say the majority of parents are going all out,鈥 White said. 鈥淭here鈥檚 this inherent guilt involved with this removal of a normal experience for children.鈥

Back-to-school shopping also offers some normalcy in an uncertain time, Giesler said.聽

鈥淚t鈥檚 a ritual for parents and students that is a sign of stability and reliability,鈥 he said. 鈥淭here鈥檚 a sort of emotional, therapeutic side.鈥

Still, the 鈥渨ild card鈥 with back-to-school spending is the Delta variant, Winder said.聽

鈥淪ales may start to soften if we see COVID-19 cases start to rise again.鈥

This report by The Canadian Press was first published Aug. 26, 2021.

Brett Bundale, The Canadian Press

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