While summer vacation is still in full swing, back-to-school shopping began early this year, largely due to concerns about inflation. Retailers, including Walmart, responded with deals, discount events, and merchandise options to meet the needs of all families with school- or college-age children.
Inflation Remains Persistent
Despite a slight easing in the inflation rate, consumers continue to feel its impact. Higher prices for goods and services have increased costs for education-related items, such as school supplies, electronics, and clothing. In addition, consumers continue to feel the pinch in the grocery store, which means they need to balance the need for new school items with everyday expenses. A recent Deloitte survey indicated that many parents will be cutting back on their budget for school items this year.
Early Bargains on Back-to-School Essentials
One way that families have addressed this concern has been to begin buying supplies early, taking advantage of sales and special deals. In early July, the National Retail Federation noted that over half of all shoppers for school and college supplies had already begun to shop, with a majority preferring to shop online.
Many retailers, including Walmart, Target, and Amazon, ran special deals and promotions in July, which caught the attention of consumers seeking to save money. Walmart particularly focused on the pain points of parents with its special back-to-school promotion that featured thousands of items at $10 or less.
Additional services for educators, parents, and older students include an online registry of school classroom supply lists, special pricing on Walmart+ memberships for college students, and a “one-click” grocery basket of school lunch items that can provide two weeks of lunches for about $2 per meal.
Walmart Woos Gen-Z
Walmart is actively wooing Gen-Z through its interactive shopping experiences, including a Roblox partnership, as well as updated clothing, snacking, and grooming/beauty items.
Recently, Walmart revived its “No Boundaries” clothing line, which had originally launched over 30 years ago to appeal to younger Gen-Xers. The relaunch represents Walmart’s desire to forge ties with younger consumers who seek to dress fashionably on limited budgets.
Other changes include the “bettergoods” private-label snack range, which features sophisticated flavors and ingredients that rival what might be found at places like Whole Foods or Trader Joe’s. Another summer launch was Pretty Smart, an “affordable luxury” beauty line with a $10 or under per-item price point. Pretty Smart products are sold exclusively at Walmart.
What Does This Mean for Suppliers?
If inflation continues to be a factor into 2025, suppliers would do well to be aware of earlier back-to-school and back-to-college shopping behavior by cash-strapped parents who are seeking deals while also spreading out purchases over a longer period of time.
Suppliers should also be aware of Walmart’s continued efforts to make its brand relevant to younger demographics and consider this initiative when making product decisions. Another consideration is that school supplies eventually run out: Families must replenish items over the school year, making it essential to ensure that school supplies are available, on the shelf, and are managed correctly on Walmart.com.
