Back-to-School Spending to Reach $528 Million Statewide Projected Spending Surges with Electronics in the Lead
Students and their families are flocking to retailers across the Silver State to gear up for the new school year. An estimated $528.0 million will be spent on clothes, backpacks, and school supplies for the upcoming academic year, according to the Retail Association of Nevada (RAN). Favorable economic conditions such as rising wages and declining inflation are helping push back-to-school spending to new highs. For retailers, the back-to-school shopping season is just behind the winter holidays in terms of importance.
RAN projects that $371.7 million will be spent on K-12 students, an increase of 7.3 percent from last year. Big-ticket electronics lead the way with an estimated spending of $136.1 million. Clothing and accessories sales come in second with expected spending of $107.4 million, followed by shoes ($69.6 million) and school supplies ($58.6 million). On a national level, families with students in grades K-12 will spend $41.5 billion, based on a recent survey by the National Retail Federation (NRF), with average spending per household of $890, up from $864 last year.
For college students, of whom nearly 115,000 are enrolled in public and private institutions in Nevada, RAN estimates total expenditures of $156.3 million for back-to-college preparations. Electronics once again leads as the largest spending category with $38.5 million. Dorm and apartment furnishings follow at $21.8 million, with clothing and accessories at $20.9 million, and food expenses at $17.3 million. Nationwide, the NRF reports that college students’ spending is projected to reach $94.0 billion, with average household spending of $1,367.
Compared to last year, Nevadans are heading to stores amid a stronger economy. Consumer confidence is at its highest level in two years, in large part due to inflation falling from 9.1 percent a year ago to 3.0 percent. Falling prices combined with steadily rising wages have provided a massive boost to consumer purchasing power. A healthy job market has also boosted consumer confidence. In Nevada, employment growth ranked first in the nation in June 2023 (latest data available), continuing a 27-month streak of ranking first or second.
Clark County schools lead return to campus with classes starting on August 7. Washoe County schools start a week later on August 14. As for colleges, including the University of Nevada campuses in Reno and Las Vegas, and the College of Southern Nevada, they’ll kick off classes on August 28.
The significant rise in expected spending this year can be primarily attributed to the surging demand for electronics. This trend is driven by several factors, including the increasing integration of academic work with electronic sources, the growing need for parents to stay connected with their children easily and the widespread desire for every child to have their own device for audio consumption. Notably, about 69 percent of back-to-school shoppers are planning to purchase electronics or computer-related accessories, a substantial increase from last year’s 60 percent. As a result, the total expenditure on electronics in the United States is projected to reach an all-time high of $15.2 billion.
When it comes to shopping preferences, online channels are popular among both K-12 and college shoppers. About 55.0 percent of respondents among K-12 shoppers plan to use online retail sites such as Walmart, Amazon or Target. Department stores are the second most favored shopping destination for both groups, with 45.0 percent of K-12 shoppers and 35.0 percent of college shoppers intending to shop there. Other notable shopping destinations for K-12 shoppers include discount stores (45.0 percent), clothing stores (41.0 percent), and electronics stores (23.0 percent). For back-to-college shopping, popular locations include discount stores (33.0 percent), office supply stores (25.0 percent), and college bookstores (26.0 percent).
While 55.0 percent of shoppers have already embarked on their back-to-school shopping as of early July, a majority (85.0 percent) still have at least half of their shopping ahead, suggesting a bustling period for Silver State retailers in the weeks to come. With rising wages, declining inflation and an increase in consumer confidence, Nevada’s economic climate remains favorable for continued growth in consumer spending, benefiting both retailers and the overall state economy.
