Slow start for back-to-school

Retailers such as Walmart, Kohl’s and Target reported a slow start to the back-to-school season as COVID-19 wreaks havoc on school reopening plans.

Target says it will be extending its assortments of school supplies through the fall. It believes 60% of American students will start the year learning online.

Neil Saunders, managing director of research firm GlobalData PLC’s retail division, projects $26.4 billion in spending for elementary through high school, down 6.4% from 2019. Back-to-college spending should fall even more, with sales down 37.8% from last year as many students will be living at home and not buying dorm furnishings, he said.

Sales of footwear in the U.S. for July totaled $2.3 billion, a 16% drop in July compared to the year-ago period, according to the most recent data from market research firm NPD Group Inc.

But National Retail Federation, the nation’s largest retail trade group, expects that a burst in spending in electronics will boost overall sales. It projects parents with children in elementary school through college will spend a combined $101.6 billion this year, up 26% from $80.7 billion last year.

The weak start to the back-to-school season, the second largest selling period behind the holidays, didn’t have a big negative impact on overall business for the fiscal second quarter for the likes of Walmart and Target. Both reported big sales gains that blew through analysts’ expectations.