6 Retail Stocks That Could Benefit From A Record-Breaking Back-To-School Shopping Season

6 Retail Stocks That Could Benefit From A Record-Breaking Back-To-School Shopping Season

Image by Wokandapix from Pixabay

The COVID-19 pandemic caused disruptions to the back-to-school shopping season in 2020 as parents braced for hybrid and at-home learning. With many schools expecting to resume in-person learning in 2021, the back-to-school shopping season could be a potential boon for retailers.

Record-Breaking Back-to-School?

Families with children in K-12 schools are expected to spend $848.90 on average for the current back-to-school shopping season, according to NRF Research. This is an increase of $59 per family over the previous year.

Total back-to-school spending could reach $37.1 billion for 2021 compared to a total of $33.9 billion in the previous year. The estimated figure would represent an all-time high. College student spending is expected to hit a record $71 billion, up $67.7 billion from the prior year.

“We enter the new school year with plans to return to the classroom and retailers are prepared to help Americans find and purchase whatever they need to make this transition as seamless as possible,” NRF CEO Matthew Shay said.

The survey shows that 51% of consumers began back-to-school shopping in July. Thirty-nine percent of survey respondents said they took advantage of large sale events such as Amazon.com, Inc. (AMZN) Prime Day, Target (TGT) Deal Days, and Deals for Days from Walmart Inc (WMT).

Back-to-school shopping could see a large increase in electronics purchases, which could benefit retailers offering electronic devices, clothes, and school supplies in one location. Online and department stores were the top destinations for survey respondents tied at 48%. Discount stores (44%) and clothing stores (41%) ranked second and third on the list.

Here are some retail stocks to watch ahead of the potential record-breaking back-to-school shopping season.

Kohl’s

Department store Kohl’s Corporation (KSS) could benefit from the strong shopping season. The retailer has fared better than several other large department stores and has more than 1,100 locations in 49 states.

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