Back to school, upcoming tax-free weekend expected to boost retailers
Jul. 22—TUPELO — As the summer break for schools winds down, retailers have been getting ready for the back-to-school shopping spree.
Adding to the anticipation is the annual Mississippi Sales Tax Holiday, which starts on July 28 at 12:01 a.m. and ends at midnight July 29. The sales tax holiday was passed during the state's 2009 legislative session and was amended in 2019.
During the holiday, no sales tax is collected on the sale of articles of clothing, footwear, or school supplies, as long as the price of a single item is less than $100.
And while inflation fell to 3% in June — down from the record 9.1% a year earlier — higher prices throughout the year have affected family budgets, and any break in costs is welcome.
"After spending so much on food and everything else, we'll take any deal we can get on clothes and stuff for school," said Mynelle Cooper, who said her kids were excited about starting school soon and getting new backpacks and shoes.
At The Mall at Barnes Crossing, general manager Jeff Snyder is equally excited.
"We're excited and happy for back to school, which for us started about two weeks ago," he said. "The past couple of years, post-pandemic, we've returned to our pre-pandemic sales in both square footage and retailer volume. It's the second busiest season in our year."
Snyder said the mall usually experiences an infusion of sales and traffic at the start of July, which stretches throughout August.
"The kids go to school, then realize their friends have something different, and things that schools also need and they'll come back to shop some more," he said. "From apparel and shoes and sports equipment, we've pretty much got it covered, and we'll have a strong season."
According to the National Retail Federation, U.S. shoppers plan to spend a record $41.5 billion during the upcoming school year, an increase of 12.5% compared to the $36.9 billion spent last year.
The NRF said families with children in K-12 plan to spend $25 more per child this year, and $890.07 on average. Back-to-college spending is expected to hit $94 billion, about $20 billion more than last year's record.
"Back-to-class shopping is one of the most important consumer shopping occasions of the year. Our research for 2023 shows American consumers are eager to jumpstart their back-to-school and college purchases early," NRF President and CEO Matthew Shay said. "Retailers have been preparing for months to ensure they are well stocked with essential items that families and students need for the school year."
At Reed's department store, president Bennett Mize said back-to-school shopping has already begun as well, with backpacks, shoes and T-shirts and shorts selling briskly.
On the men's side suits have been seeing well, too, as many young men going off to college are preparing to join a fraternity, he added.
"For women and children, we're getting a lot of customers for first-day-of-school outfits from K to college," Bennett said. "Also in children's, we have little back packs and lunchboxes, and a lot of moms are coming in to put it together for their kids. And we have a lot of grandparents who aren't sure what to get and we're selling gift cards to them."
While local retailers and the NRF have an optimistic outlook on the season, one survey is less positive.
Last week, Deloitte forecast BTS by parents with children in grades K-12 to decrease 10% this year over last year to $597 per student. The last time Deloitte expected a decline in back-to-school spending was in 2014.
Deloitte said shopping for back-to-school essentials like clothes, shoes and electronics will be a bigger struggle for families this year who are trying to manage their household budgets with less disposable incomes because of inflation.
But if recent results at The Mall at Barnes Crossing are in indicator, sales will be just fine.
"Our sales per square foot is $400, and pre-pandemic we were around $390, and we continue to be better and every year," Snyder said. "We're 92% leased, which is above the company average and we're in good shape overall."
Despite the loss of H&M in March, the mall has announced at least two new tenants — Daily Thread and Windsor — that expect to open later this year.
"Back-to-school is an indicator of Christmas, and I think with tax-free weekend coming up combined with the discounts retailers will have, it's going to be a strong season," Snyder said. "We'll get a short break, but then it's getting ready for Christmas. We feel good about this year."
Mize said the Christmas shopping season brings a lot of energy, but back to school is equally exciting and invigorating.
"We see generations of customers and employees together, and that's a lot of fun," he said. "We get to see our customers grow and then their kids grow as well."
And while the focus is on back-to-school shopping and dealing with the warm weather, Mize said the store is looking ahead, too.
"With tax free weekend and school starting earlier, we're starting to get ready for the fall and leading into winter," he said. "So there are great sales and deals on the floor along with tax free."
