Back to school shopping is expected to be down 10% this year. It's the first drop since 2014.
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00:00 (soft music)
00:02 Parents are gonna be hit with sticker shock
00:08 when the summer is over.
00:10 Shopping for back to school essentials
00:11 such as clothes, shoes, and electronics
00:14 will be a bigger struggle for families this year
00:17 who are trying to manage their household budgets
00:19 with less disposable incomes because of inflation.
00:23 Back to school spending by parents
00:25 with children grades K to 12
00:27 is expected to decrease 10% this year over last year
00:32 to $597 per student.
00:34 The last time there was a decline
00:36 in back to school spending was in 2014.
00:39 Although US consumer spending has remained strong
00:42 even as inflation has taken a bite
00:44 out of discretionary purchases,
00:46 the economy is starting to show cracks.
00:49 Retailers including Target and Home Depot
00:52 have reduced their profit and sales outlooks
00:54 in recent months as Americans start to hold back
00:57 on their discretionary purchases.
00:58 [MUSIC]