According to JLL's '2026 Back-to-School Survey', parents' back-to-school budgets have risen by almost 12 per cent this year. This development is benefiting discount stores, with the dollar store sector being included in the top 10 list of parents' most frequently mentioned shopping destinations for the first time. The rise of this sector is a direct consequence of the ongoing austerity measures that American households are having to implement in the face of inflation.
The online survey collected feedback from 1,022 US parents with children aged between 5 and 18. The publication coincides with the peak of back-to-school shopping in July, during which 27 per cent of surveyed parents plan to work through their children's classroom wish lists. Over 90 per cent of parents intend to shop in physical stores this year, with spending plans dominated by dollar stores and mass retailers.
The popularity of affordable retailers such as Dollar Tree and Walmart is not surprising, as the study found an 11.7 per cent year-on-year increase in school budgets, averaging $489 per child. This increase significantly exceeds the current US inflation rate of approximately 4 per cent. James Cook, JLL’s Americas Director of Retail Research, explained that families are looking for retailers that respect their time and budget. This is why 68.7 per cent of respondents cite saving money as a priority and 35.1 per cent prefer to find the entire school list in one place.
Changed Shopping Habits and Retail Winners
The largest budget increase was observed among middle-income families, who raised their spending forecasts by approximately 20 per cent this year to $495 per child. The number of discretionary items on parents' shopping lists decreased for the second consecutive year, meaning fewer non-essential items such as fidget spinners or novelty pens will end up in shopping trolleys. Consumers are shopping more strategically, with stores like Dollar General and Dollar Tree gaining ground due to their discounts, and mass retailers like Walmart taking the top spot for their 'one-stop-shop' convenience. Walmart's popularity increased by 22.5 percentage points, reaching 77.3 per cent of surveyed parents, according to JLL.
Strategic Alignment of Shopping Centres
Shopping centres that offer both budget-friendly options and more specialised shops are expected to succeed in this year's back-to-school shopping. This development coincides with the increasing dominance of rising petrol prices over household budgets. Naveen Jaggi, President of JLL’s Retail Advisory Services, emphasised that centres focusing on affordable formats while also offering specialised depth can attract both high customer traffic and well-paying customers. Landlords who consciously cater to both ends of this spectrum will therefore emerge as winners.
