Increased Costs and Reduced Selection in Back-to-School Shopping for Essentials
As the fall season approaches, families are bracing themselves for potential price increases on back-to-school items. According to Patrick Penfield, a professor of practice in supply chain management and director of executive education at the Syracuse University Whitman School, tariffs are expected to drive up prices for goods such as apparel, sneakers, backpacks, pens, and pencils.
The anticipated price hike could reach up to 25% by September 1, influencing consumer behaviour and prompting families to shop earlier, seek discounts, and prioritize value and necessity when purchasing school essentials. This behavioural change has a ripple effect on retailers, who are adjusting their stocking and pricing strategies during the critical back-to-school season.
While direct evidence on specific items like pens and pencils is limited, the general trend indicates that tariff-related price hikes on imported goods can raise costs broadly across various categories, including apparel and accessories such as sneakers and backpacks, many of which have supply chains linked to countries affected by tariffs.
Retailers are attempting to manage these pricing pressures and inventory challenges by ordering less inventory from high tariff countries. Some companies have tried to delay passing tariffs onto consumers, temporarily softening price increases, but storage costs and supply constraints may still impact prices and product availability as inventories adjust.
In light of these circumstances, early shopping has become a key strategy for consumers aiming to avoid these cost increases and inventory shortages. Patrick Penfield advises parents to begin back-to-school shopping as soon as possible to secure lower prices and better variety. However, it's important to note that this early shopping spree may lead to a reduction in product variety for certain items.
In summary, tariffs in fall 2022 are contributing to higher prices for back-to-school items and prompting consumers to adjust shopping habits. This could influence both costs and the variety of products available for purchase. It's recommended to start shopping early to secure the best deals and ensure a wider selection of products.
- To offset the potential 25% increase in prices for back-to-school items by September 1, families might consider prioritizing spending in the 'finance' section of their budget, allocating more funds towards school essentials.
- As the anticipated tariff-related price hikes broadly impact various categories, like 'education-and-self-development' items, parents may need to prioritize value and necessity, focusing on essentials while possible inventory shortages persist.
