Back-to-school apparel sales in US expected to grow 78.2% YoY: Report

As students wrap up the current school year, retailers – and parents – are already preparing for a robust back-to-school shopping season as more kids head back into the classroom, according to Mastercard SpendingPulse, which measures in-store and online retail sales across all forms of payment.

US retail sales are expected to grow 5.5 per cent excluding automotive and gas during the back-to-school period compared to 2020. Compared to 2019, sales are expected to grow by 6.7 per cent.

“Back to school has always been a prime season for retailers. This year, the broader reopening brings an exciting wave of optimism as children prepare for another school year, and the grown-ups in their lives approach a similar ‘return to office’ scenario,” said Steve Sadove, senior advisor for Mastercard and former CEO and chairman of Saks Incorporated. “This back-to-school season will be defined by choice as online sales remain robust, brick and mortar browsing regains momentum and strong promotions help retailers compete for shoppers' wallets.”

As the broader US reopening occurs and consumers return to brick and mortar, e-commerce sales are anticipated to ease slightly compared to last year (-6.6 per cent) but will remain up a significant amount (+53.2 per cent) when compared to 2019.

Department Stores, outdoor shopping centres and malls offer a fresh change of scenery for shoppers. The report forecasts a 25.3 per cent YoY and 9.5 per cent YO2Y increase in the Department Store sector as they rebound from last year’s dip in foot traffic. Buy online, pick-up in store as well as technologies such as contactless will remain important as consumers continue to seek low-contact experiences, the report added.

The anticipated back-to-school sales growth is a continuation of ongoing retail sales momentum, with May marking the eighth consecutive month of total retail sales growth. According to Mastercard SpendingPulse, US retail sales excluding automotive and gasoline, increased 12.2 per cent year-over-year in May, and 10.2 per cent compared to May 2019. Online sales in May grew 1.1 per cent and 94.8 per cent respectively, compared to the same periods.

Fibre2Fashion News Desk (KD)