Tuesday, November 5

Rise in Delta cases jeopardizes back-to-school shopping

The return to classes is near, for weeks parents have been preparing so that their children can soon return to class. Millions of students will finally be in their educational centers and for this you have to have what is necessary.

These days consumers will be in return to the stores where you can buy clothes and everything you need for the long-awaited return to school. But not everything is positive, according to a First Insight survey, families are cutting expenses due to the resurgence of Delta variant cases .

This situation is a threat to retail stores that are involved in the back-to-school shopping season, which, even before Delta, was projected to be successful and profitable. But with infections on the rise this may be different .

According to CNBC, Deloitte estimated that back-to-school spending for children in grades K – 12 would reach $ 32. 5 billion dollars, 16% more than in 2020 and 17% that 2019. This represents $ 612 dollars per student. The study was conducted with 1, 200 parents between the 27 May and June 5.

First Insight found that the 64% expressed that in general they are anxious about the pandemic, compared to 51% in July. The 56% reported feeling nervous about interacting with sales associates in stores , a sharp increase of 43% in July. These numbers reveal how consumers feel.

In addition to the Delta variant and adjustments in family finances, the retail business community faces a third limitation, the inventory shortage . This has to do with the fact that the supply chain has not recovered from the impact of the pandemic.

Retailers are facing a difficult scenario, since in the Previous months, when the economic reopening began, little by little they were lifting themselves from the financial blow left by the confinement. Part of your bid to raise your earnings has to do with the strong sales seasons .

The back-to-school shopping season, For many companies it is a fundamental moment for their annual turnover, since this represents that their profits skyrocket, but if consumers are financially limited, as well as the cases of Delta rise, there will be no profit.

Although there is still no catastrophic scenario, the next few weeks will be essential to know if sales in the school sector are going positively or if the fears of the business class are met. The truth is that by the end of the month millions of students will return to classrooms and will need new equipment.

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