Stores Lure Back-to-School Shoppers With ‘Buy Now, Pay Later’ Plans
NEW YORK (NEWSnet/AP) — Retailers in the U.S. are plying shoppers with offers for back-to-school essentials at affordable prices, and marketing “buy now, pay later” deals.
Various forecasts project back-to-school sales this year will be similar or lower than last year.
Savvy shoppers have shown they are willing to shop second-hand and to buy store labels and brands, which typically are less expensive than nationally advertised brands.
Unlike gifting holidays such as Christmas, the back-to-school period is dominated by spending on essentials like class supplies and replacing clothes and shoes that children have outgrown.
Much like the winter holidays, the back-to-school shopping season keeps starting earlier each year. One reason is Amazon’s Prime Day.
Target offered 20 school supplies, including notebooks and pencils, that together cost less than $20.
More people are using “buy now, pay later” services heading into the back-to-school season. In June, $6.75 billion worth of online purchases in the U.S. were made with BNPL services, a 14.3% increase from the same month a year ago, according to Adobe Analytics.
Consumer advocates have expressed concern that increased use of that payment method may reflect financial stress and leave Americans in more debt.
Afterpay data from May, June and July show a 65% year-over-year increase in backpack sales made through the company's payment system, while sales of flashcards and electronic tablets grew by more than 50%.
Sales of “school shorts,” “school skirts” and low-top sneakers purchased through Afterpay increased more than 100%.
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