back-to-school

Parents Shop Early As Walmart Undercuts Target On Back-To-School Prices


Walmart is intensifying its low-price promises.
 

America’s parents are kicking off back-to-school shopping earlier than ever — and spending less while they’re at it. Faced with tighter household budgets and the potential impact of tariffs and inflation, families are hunting for deals now, not later. And retail giants like Walmart and Target are racing to meet them with aggressive pricing strategies and new promotions.

A new report from the National Retail Federation finds that 67% of K–12 parents had already started shopping by early July, up from 55% at the same point last year. That’s the highest rate of early shoppers since the NRF began tracking timing in 2018.

Parents are also trimming budgets. They expect to spend an average of $858 per student on clothing, shoes, school supplies and electronics — down from $875 in 2024. Broken down, that includes $296 on electronics ($13.6 billion total), $249 on clothing and accessories ($11.4 billion), $169 on shoes ($7.8 billion), and $144 on school supplies ($6.6 billion).

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Deloitte’s back-to-school forecast, released last week, also predicts reduced spending, estimating an average of $570 per child — a $16 drop from last year. The firm found lower-income households cutting their budgets by 10%, compared to 7% among middle-income families and 9% for higher-income ones.

Back-to-college spending is showing similar signs of restraint. The NRF says students and families expect to spend an average of $1,326, down slightly from $1,365 in 2024.

“Consumers are being mindful of the potential impacts of tariffs and inflation on back-to-school items, and have turned to early shopping, discount stores and summer sales for savings on school essentials,” says Katherine Cullen, vice president of industry and consumer insights at NRF, in the report. “As shoppers look for the best deals on clothes, notebooks and other school-related items, retailers are highly focused on affordability and making the shopping experience as seamless as possible.”

Promotional events like Prime Day, Walmart Deals and Target Circle Week loom large in parents’ plans. The NRF says 82% of back-to-school shoppers expect to rely on those summer events to stretch their budgets.

In response, major retailers are dialing up the value. Walmart recently announced it will roll out back-to-school prices lower than 2024 levels. That follows Target’s June commitment to keep this year’s prices flat compared to last.

“We understand how important it is for families and teachers to save time and money when preparing for the school year,” says Denise Incandela, executive vice president of fashion at Walmart, in the company’s announcement. “We’re proud to offer another year of incredible value — including school supplies, must-have styles and essentials.”

Walmart is also making strategic plays in its fashion and educator offerings. It’s launching Weekend Academy, a new private-label fashion brand aimed at tweens and positioned as “first-day ready.” And it's upgrading its classroom registry with a new “Explore” feature, designed to help teachers easily find and share school supply lists.

As prices rise across categories and consumer confidence wavers, this year’s back-to-school season is shaping up as both a test of household resilience and a competitive arena for retail giants aiming to win value-conscious shoppers early and often.

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