Shoppers at an outlet in Los Angeles, California. US retailers are hoping sales will touch pre-pandemic levels this year as the back-to-school season boosts figures. AFP
Shoppers at an outlet in Los Angeles, California. US retailers are hoping sales will touch pre-pandemic levels this year as the back-to-school season boosts figures. AFP
Shoppers at an outlet in Los Angeles, California. US retailers are hoping sales will touch pre-pandemic levels this year as the back-to-school season boosts figures. AFP
Shoppers at an outlet in Los Angeles, California. US retailers are hoping sales will touch pre-pandemic levels this year as the back-to-school season boosts figures. AFP

US retailers eye bumper sales from back-to-school shopping season


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The retail industry is poised for its biggest back-to-school shopping season in at least five years, buoyed by parents and pupils who are primed to snap up gear for the in-person classroom experience after a year of virtual learning.

Spending is expected to reach $32.5 billion, up 16 per cent from 2020 and 17 per cent from 2019, Deloitte said. Retailers are bullish that they can benefit from shoppers’ increased comfort with online shopping, honed during the pandemic, and strong demand for everything from school uniforms to markers.

Still, retailers and brands have ample challenges to navigate to score strong sales. Delays at global ports could contribute to shortages of coveted products, and an elongated shopping season that stretches from June to late September makes it harder to plan inventory flow and promotions. Inflationary pressures abound and could alter shopper behaviour, making the season a test of how well the industry has adapted to a consumer landscape reshaped by the pandemic.

“Parents are desperate to get these kids back in school,” said Rod Sides, vice chairman and head of US retail and distribution at Deloitte. “And we’re seeing they’ll be willing to spend.”

Technology will be an important area for spending as parents and students continue to spring for gadgets. But apparel is likely to make a resurgence as students will, for the most part, no longer be floating heads on Zoom calls. That is a welcome change for retailers that saw clothing sales suffer amid stay-at-home living. A forecast from Customer Growth Partners predicts sales of apparel and accessories will soar 46 per cent from 2020 during the back-to-school season, stronger growth than it expects from other categories. Overall, CGP expects retail sales to increase 16 per cent from last year in the period from July through to the end of September.

Several retailers are expecting sales from this back-to-school season to outpace 2019. Some, including Lands’ End, are expecting shoppers to open their wallets early.

“Parents want to really prepare and be ready,” Lands’ End chief executive Jerome Griffith said. “I think your average consumer understands that there’s a supply chain issue in the US based on how quickly the economy has been heating up. They’re shopping earlier to be able to buy what they want.”

Newell Brands, the company behind the Elmer’s and Sharpie brands, is positioned to benefit from a return to the classroom. The company is “really optimistic” about a potential rush as students buy supplies they skipped over last year and parents spend a little extra on name-brand items for younger kids. For college students, larger class sizes due to deferred enrolment could contribute to pent-up demand, said Laurel Hurd, president of the company’s learning and development segment.

“We’re excited for a return to normal after all the craziness we’ve been through,” she said.

Shoe and accessories retailer DSW ordered more Adidas and fewer cartoon backpacks this year, catering to changing trends. Bed Bath & Beyond recently launched a private label line featuring bedding and bathroom items aimed at college students. The company has begun offering Klarna and AfterPay, instalment-payment options that younger, Gen Z shoppers are more likely to use. Old Navy, the cheap chic retailer owned by Gap, will highlight its active apparel and stretch denim, conceding that the comfort trend will still be king during the autumn. Dormify, a start-up that sells college decor, said headboards were selling out fast as incoming students looked to spruce up their dormitories.

Retailers are probably happy because they will get a higher price point
Rod Sides,
vice chairman and head of US retail and distribution at Deloitte

Deloitte’s survey found that 62 per cent of students were expecting to return to in-person school this autumn, while 19 per cent of students said they would experience a hybrid model. The move away from mostly virtual learning bodes well for retailers like Lands’ End that sell uniforms and DSW, which sells hard-sole dress shoes, “Mary Jane” shoes and the boat shoes that some schools require.

“All of that stuff is exploding,” said Jim Weinberg, DSW’s chief merchandising officer.

Orders for back-to-school inventories are usually placed months in advance, a process that was complicated this year as a shortage of shipping containers and delays at ports disrupted global trade. Accordingly, DSW factored in 120 days in shipment time, compared to the usual 90. Kohl’s also moved to bring in merchandise early because of industrywide supply chain issues. Bed Bath & Beyond said it was mindful of inflation on raw materials, labour and freight, and is managing the shipping costs and delays for products coming from Asian ports. In some cases, it might raise prices on consumers.

Such moves could leave some shoppers disappointed, as more than half of parents said in Deloitte’s survey that they would hunt for discounts. Retailers have used the pandemic to reset their relationship with promotions; many started offering them less frequently and became more comfortable buying less inventory. That stance will now be tested during this time of year when customers have been trained to expect deals. Whether or not families will be able to catch a deal will largely come down to the timing of their shopping trips, Mr Sides said.

“Retailers are probably happy because they will get a higher price point,” he said.

The back-to-school season provides important clues about what products are hitting the mark with shoppers, Doug Howe, Kohl’s chief merchandising officer said.

This time of year "is one of the more exciting ones because it usually is the preview of what's going to happen for holiday, which is obviously our biggest season,” he said. “There are a lot of trends that will emerge that we'll be chasing into holiday."

The specs
  • Engine: 3.9-litre twin-turbo V8
  • Power: 640hp
  • Torque: 760nm
  • On sale: 2026
  • Price: Not announced yet
The specs

Engine: 1.5-litre turbo

Power: 181hp

Torque: 230Nm

Transmission: 6-speed automatic

Starting price: Dh79,000

On sale: Now

How will Gen Alpha invest?

Mark Chahwan, co-founder and chief executive of robo-advisory firm Sarwa, forecasts that Generation Alpha (born between 2010 and 2024) will start investing in their teenage years and therefore benefit from compound interest.

“Technology and education should be the main drivers to make this happen, whether it’s investing in a few clicks or their schools/parents stepping up their personal finance education skills,” he adds.

Mr Chahwan says younger generations have a higher capacity to take on risk, but for some their appetite can be more cautious because they are investing for the first time. “Schools still do not teach personal finance and stock market investing, so a lot of the learning journey can feel daunting and intimidating,” he says.

He advises millennials to not always start with an aggressive portfolio even if they can afford to take risks. “We always advise to work your way up to your risk capacity, that way you experience volatility and get used to it. Given the higher risk capacity for the younger generations, stocks are a favourite,” says Mr Chahwan.

Highlighting the role technology has played in encouraging millennials and Gen Z to invest, he says: “They were often excluded, but with lower account minimums ... a customer with $1,000 [Dh3,672] in their account has their money working for them just as hard as the portfolio of a high get-worth individual.”

UPI facts

More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
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Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions

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Stree

Producer: Maddock Films, Jio Movies
Director: Amar Kaushik
Cast: Rajkummar Rao, Shraddha Kapoor, Pankaj Tripathi, Aparshakti Khurana, Abhishek Banerjee
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UAE currency: the story behind the money in your pockets
German intelligence warnings
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  • 2013: "Financial and logistical support from Germany for Hezbollah in Lebanon supports the armed struggle against Israel ... Hezbollah supporters in Germany hold back from actions that would gain publicity." Supporters in Germany: 950
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Source: Federal Office for the Protection of the Constitution

Gothia Cup 2025

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1,942 teams

116 pitches

76 nations

26 UAE teams

15 Lebanese teams

2 Kuwaiti teams

Honeymoonish
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F1 The Movie

Starring: Brad Pitt, Damson Idris, Kerry Condon, Javier Bardem

Director: Joseph Kosinski

Rating: 4/5

SPECS

Engine: Two-litre four-cylinder turbo
Power: 235hp
Torque: 350Nm
Transmission: Nine-speed automatic
Price: From Dh167,500 ($45,000)
On sale: Now

The specs

Engine: Turbocharged four-cylinder 2.7-litre

Power: 325hp

Torque: 500Nm

Transmission: 10-speed automatic

Price: From Dh189,700

On sale: now

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The%20specs
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Pad Man

Dir: R Balki

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Starring: Yonas Kibreab, Zoe Saldana, Brad Garrett

Directors: Madeline Sharafian, Domee Shi, Adrian Molina

Rating: 4/5

Graduated from the American University of Sharjah

She is the eldest of three brothers and two sisters

Has helped solve 15 cases of electric shocks

Enjoys travelling, reading and horse riding

 

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ESSENTIALS

The flights

Emirates flies from Dubai to Phnom Penh via Yangon from Dh2,700 return including taxes. Cambodia Bayon Airlines and Cambodia Angkor Air offer return flights from Phnom Penh to Siem Reap from Dh250 return including taxes. The flight takes about 45 minutes.

The hotels

Rooms at the Raffles Le Royal in Phnom Penh cost from $225 (Dh826) per night including taxes. Rooms at the Grand Hotel d'Angkor cost from $261 (Dh960) per night including taxes.

The tours

A cyclo architecture tour of Phnom Penh costs from $20 (Dh75) per person for about three hours, with Khmer Architecture Tours. Tailor-made tours of all of Cambodia, or sites like Angkor alone, can be arranged by About Asia Travel. Emirates Holidays also offers packages. 

THREE
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War and the virus
The burning issue

The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE. 

Read part four: an affection for classic cars lives on

Read part three: the age of the electric vehicle begins

Read part two: how climate change drove the race for an alternative 

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The bio

Job: Coder, website designer and chief executive, Trinet solutions

School: Year 8 pupil at Elite English School in Abu Hail, Deira

Role Models: Mark Zuckerberg and Elon Musk

Dream City: San Francisco

Hometown: Dubai

City of birth: Thiruvilla, Kerala

Updated: July 09, 2021, 5:30 AM`