Back-to-School Shoppers Sidestep Price Hikes with Budget Tactics and Discount Retailers

Amid rising costs and economic uncertainty, U.S. families are finding ways to keep back-to-school spending under control. A new survey from the International Council of Shopping Centres (ICSC) reveals that 91% of back-to-school shoppers say higher prices are directly impacting their purchase decisions this year.

To counter price increases, shoppers are adjusting their strategies:

• 38% are buying items only when on sale

• 29% are switching to cheaper brands

• 28% are reusing supplies from previous years

• 29% are comparison shopping more actively

“Retailer-driven promotional events have become a vital part of the back-to-school season,” said Tom McGee, president and CEO of ICSC. “American families continue to spend even as they face an uncertain economic outlook, and successful retailers will continue using creative deals and promotions to entice them to spend throughout the year.”

More than half of shoppers (56%) expressed concern about affording the same supplies they’ve bought in previous years, citing tariff-driven price hikes. According to the ICSC report, 8 in 10 shoppers expect to spend more this year than last, largely due to inflation and early stockpiling for the school year.

🔍 Where Are They Shopping?

To stretch their budgets, shoppers are flocking to discount-heavy retailers:

• 62% plan to shop at discount stores

• 57% at Amazon

• 42% at dollar stores and variety retailers

This trend is further emphasised by increased participation in sales events such as Amazon Prime Day, Target Circle Week, Walmart Deals, and upcoming Labour Day sales.

Meanwhile, early shopping habits are gaining traction. A separate TeacherLists study found that 20% of parents began their back-to-school shopping in June—up from 11% in 2024—as a way to avoid supply shortages and rising prices.

💡 AI Steps In

Technology is also playing a role in helping parents manage rising costs. A PwC survey found that 1 in 5 back-to-school shoppers plan to use AI tools to search for deals, while a YouGov study showed parents are more likely to use AI assistants than the general population.

💵 Still Spending More Overall

Despite efforts to economise, total spending is still rising. Coresight Research forecasts that back-to-school spending will reach $33.3 billion in 2025—a 3.3% year-over-year increase. Families expect to spend an average of $378 per child, up more than 21% from $311 last year.

For price-sensitive consumers, back-to-school shopping in 2025 has become a balancing act. While overall spending is climbing, shoppers are navigating around inflation by relying on discount retailers, early promotions, AI tools, and even reusing supplies. With family budgets under pressure, retailers offering transparent pricing and timely deals stand to gain the most.