Back-to-school spending is tipped to inject around $2.7 billion into the Australian retail economy.
New research by the Australian Retailers Association (ARA) found the annual spend was projected to be $150 million more than last year.
ARA Chief Industry Affairs Officer Fleur Brown said a recent survey showed 5.1 million Australians aged over 18 would make a back-to-school (BTS) purchase, with an average spend of $525 each.
Ms Brown said 44 percent of those surveyed said they would be spending more on BTS purchases than in 2024.
She said the projected BTS purchases would provide retailers with a welcome cashflow boost.
“Back to School sales are the first seasonal moment for retail after Boxing Day and peak season trading. Whilst these are mainly essential purchase items, for many retailers they provide positive momentum to begin the year.
“After a tough year, with interest rates remaining high and household budgets stretched for many families, we expect to see a continued focus on value in the spending activity.”
Ms Brown said typically, uniforms, stationery, books and shoes made up most of the spending, with tech, school bags, lunch boxes and water bottles also highly sought after.
“It remains tough out there for a lot of families. These essentials are a critical focus for families wanting to ensure their kids get off to a strong and confident start for the school year,” she said.
Ms Brown said many schools provide exemptions and financial support for those experiencing financial hardship, while some State Governments have their own programs to assist.
Key findings of survey:
- Of those participating in the sales, 59 percent are making purchases for primary school, 50 percent for high school, and nine percent for university or TAFE. Around four percent of purchases are for Post-Graduate (Participants could select multiple options).
- The 35–49-year-old age bracket was set to make up the lion’s share of BTS spending, spending an average of $600 each and making up $1.75 billion of the $2.7 billion overall spend.
- Around 15 percent of those participating in the sales planned to spend more than $1000, while nine percent planned on spending less than $100.
- The most popular purchases would be stationery (mentioned by 55 percent of respondents), school uniforms (53 percent), footwear (50 percent), books (40 percent) and lunchboxes or water bottles (27 percent). Other purchases included: school bags, computer or tech equipment, sports gear and home equipment such as desks and chairs.
- Women remained the main household decision maker on BTS purchases with 74 percent of purchases, followed by men at 14 percent, guardians at six percent and students themselves at two percent.
- Most (65 percent) would purchase in-store, with 33 percent making purchases online and 37 percent making purchases directly through the school or school suppliers. WA (46 percent) and SA (40 percent) had the highest number of respondents planning to purchase online. This contrasts with NSW where 76 percent of purchasers intend to buy items in-store.
