© Reuters. PHOTO: A school principal greets students as they return to NYC public schools for face-to-face training in the face of the global coronavirus disease (COVID-19) outbreak, at PS 506 in Brooklyn, NY, USA, December 7. , 2020. REUTERS / Br
(Reuters) – Sales of school supplies in U.S. department stores are expected to grow by about 25% from last year as parents spend money on clothing, supplies and electronics in the new school year, when many children return to class, according to industry report. on Thursday.
According to Mastercard Inc (NYSE 🙂 SpendingPulse, department store sales for this school season, which runs from mid-July to early September, will grow 25.3% from a year earlier and 9.5% in 2019. Total retail sales, excluding autos and gas, are projected to grow 5.5%.
After staying at home for more than a year due to the health crisis, Americans are more confident to go out and spend money in stores thanks to increased vaccinations, record savings and incentive packages.
“The broader discovery brings an exciting wave of optimism as children prepare for the next school year and adults in their lives move closer to a similar ‘back to office’ scenario,” said Mastercard senior advisor Steve Sadov.
Apparel sales are expected to grow 78.2% year-over-year as shoppers look to update their wardrobes based on last year’s sporting styles when they worked and studied from home. Electronics sales are forecast to grow 13%.
The report also noted a 6.6% drop in e-commerce sales from a year earlier when most people shopped online, but they are expected to grow 53.2% in two years.
The pandemic has pushed department stores such as Macy’s (NYSE 🙂 and Kohl’s (NYSE 🙂 to sell primarily online and optimize their businesses at a time when they are already facing intense competition and changing consumer preferences.
On Wednesday, the National Retail Federation raised its forecast for US retail sales growth in 2021 as the economy resumes faster than forecast.
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