Back-to-School Shoppers Split Between Luxury, Discount

High-end retailers and value stores are winning as students begin a new school year.

August 31, 2016

NEW YORK CITY – This year, back-to-school shopping has two winners: luxury merchants and dollar stores, The New York Times reports. As income disparity becomes more pronounced, high-end retailers and discount stores have reaped the benefit—it’s the stores hanging out in the middle, such as traditional department brands, that are struggling.

“Both luxury retailers and value stores, like dollar stores, are benefiting right now from the back-to-school trend,” said Jharonne Martis, a Thomson Reuters retail analyst. “They’re really benefiting from their core consumer.”

Families will shell out an average of $673.57 for school supplies, clothes and electronics this year, up sharply from $630.36 last year, according to the National Retail Federation. In total, families will spend more than $27 billion for back-to-school items, making this season the second-largest behind Christmas.

The big change for 2016 is that families are spending on the high end and low end. For example, parents can purchase designer notebooks and desk accessories, such as a $28 Terez pencil case, or $1 glue sticks at dollar stores.

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