Back-to-school season may be cold! American retailers are panicking and engaging in a "price war"!

It is learned that according to foreign media reports, major US retailers including Walmart, Foot Locker and Marks & Spencer have filled their shelves with low-priced goods, including notebooks, sneakers and clothing, in preparation for this year's challenging back-to-school shopping season.

U.S. shoppers’ spending during the summer months before the college and K-12 school years has been growing steadily since 2015, according to the National Retail Federation, a trade group.

Executives at Ulta, Macy's, Ralph Lauren and Nordstrom said in their latest quarterly earnings reports that while shoppers have been demanding more essentials this year, they are being more disciplined about where they spend their money because of stubbornly high inflation.

Walmart CEO Doug McMillon said at the company's annual meeting last Friday that it will offer more back-to-school items this year at "open price points," including notebooks, pencils, pens. Walmart Chief Financial Officer John David Rainey said that while the company is not immune to "economic fluctuations," Walmart will be in a better position than other retailers this year due to its reputation for low prices.

Industry insiders predict that a major challenge facing retailers is that American parents may buy less clothing and sneakers as spending on essential items such as pencils, notebooks and laptops rises. According to data from the U.S. Department of Commerce, purchases of non-essential items such as clothing and shoes have fallen since January this year.

Jessica Ramirez, senior research analyst at Jane Hali & Associates, noted that retailers are facing a "volatile time" (in demand).

Target Corp. cut its full-year guidance on Wednesday due to weaker demand in the consumer market, as the company said cash-strapped consumers prioritized necessities over discretionary items such as apparel and electronics.

Victoria's Secret's CEO Martin Waters recently announced that the company will carry out a "radical overhaul" of the troubled PINK clothing brand, phasing out hoodies, T-shirts and bottoms with logos. Both Victoria's Secret's and Macy's plan to clear out unsold inventory through promotions.

Executives at Abercrombie & Fitch, American Eagle, Urban Outfitters and Kohl’s said on earnings calls that they will focus on new styles — particularly activewear, dresses and non-jean bottoms — as a way to entice parents to open their wallets.

It is learned that in addition to the retailers mentioned above, clothing retailers such as Abercrombie & Fitch, American Eagle, Hollister and Urban Outfitters are also adjusting their sales strategies to attract more audiences amid slowing sales.

Editor ✎ Nicole/

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