US Markets
Friday, August 25th, 2023 3:34 pm EDT
College students around America are beginning the trek back to campus. A precursor to that journey is the back-to-school shopping season, and this year it’s estimated to hit a record-breaking $94 billion for college students.
The National Retail Federation estimates this boom in its back-to-school data and expects family spending on college students to be around $1,367 per student, up slightly from last year.
Inflation is driving the price of school supplies up, but it’s a TikTok trend that may be fueling a part of the high spending for college students. Students are showing off their dorm room designs on the popular social media app, sparking a “silent competition” between students that incentivizes more spending at retailers.
“So far, the U.S. consumer is showing their willingness to still open up their wallet for that discretionary spend as long as the value is compelling,” says Simeon Siegel, senior analyst at BMO.
Back-to-school shopping is also used as a barometer to gauge potential holiday spending. Early back-to-school numbers are appearing strong for retailers in the space, who are also looking to capture sector share from shuttered Bed Bath & Beyond stores.
Watch the video above to find out more about the TikTok trend fueling back-to-college spending.
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