Marketplace Morning Report What uncertainty means for back-to-school shopping
Jul 11, 2025
As back-to-school shopping kicks off early this year, retailers brace for a drop in spending driven by inflation concerns. A recent survey hints at cautious consumer behavior influenced by economic uncertainty. The potential for new tariffs against Canada looms over the shopping season, raising prices and complicating sales strategies. Meanwhile, banks are taking a careful approach to lending amid mixed demand, and the Southern U.S. shows signs of growth, driven by new residents and a focus on local investment.
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Back-to-School Spending Declines
- Back-to-school shopping spending is expected to decline this year when adjusted for inflation, according to a Deloitte survey.
- Economic uncertainty and inflation worries are dampening consumer enthusiasm for this major retail event.
Tariffs Impacting Back-to-School Prices
- Tariff uncertainty is a key concern for retailers and consumers amid rising prices.
- Price increases have already begun showing up across various back-to-school items, impacting purchasing decisions.
Transparency Helps Manage Tariffs
- Retailers should be transparent with consumers about tariffs and pricing changes.
- Adding clear tariff line items and brand messaging can help manage consumer expectations and foster trust.