Report: Back-to-school item prices up nearly 10% in July
Online prices on back-to-school staples are up while discounts from brands are down this year, putting consumers in a difficult position.
That’s according to the latest same-site sales data data from e-commerce platform Klaviyo, which revealed that year over year, the typical price paid for back-to-school items in July was up nearly 10%. Apparel and accessories saw the sharpest increase at 9% as tariff uncertainty led to increased costs. After a dip in the first quarter of the year, average selling prices (ASPs) on back-to-school items have risen every month since April.
Apparel brands with an average order volume (AOV) of $70 have seen a surge in both order sizes (+7%) and ASPs, according to Klaviyo. These lower-AOV brands, which often serve families during back-to-school, tend to operate with the tightest margins. Mid-tier brands ($140 AOV) saw more modest AOV growth (+4%), while high-end brands ($370 AOV) barely had prices increase (+1%).
[READ MORE: Survey: Majority of BTS shoppers used sales events to save money this year]
On the retail/brand side of the equation, Klaviyo noted that discount rates dropped in July compared to the same time last year. In April, many brands front-loaded promotions to boost cash flow ahead of potential tariff-related cost increases. Now, Klaviyo says they are pulling back on promotions, a trend that could foreshadow a leaner discount environment heading into Black Friday and Cyber Monday.
Repeat customers now account for 60% of orders, up three percentage points since January and 1.5 points year over year. In apparel, the gain was even sharper, with a three point year-over-year increase concentrated in July.
Revenue from repeat buyers climbed 14% overall and surged 21% when driven by email and SMS, which Klaviyo says suggests consumers are gravitating toward the brands they know and trust, and are hesitant to try new ones.
Discounts for new buyers have stayed relatively flat, but deals for repeat buyers fell four points compared to last year as brands become more selective in how they use promotions to keep loyal customers engaged.
“This focus on repeat buyers is a smart move in a market where acquiring new customers is increasingly costly,” said Jake Cohen, Head of Industry and Insights at Klaviyo. “For brands with strong equity, customer loyalty tends to increase, giving them more license to offer added value – like expanding into new product categories – based on the trust they’ve built.”
