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A14 BUSINESS
Thursday 1 augusT 2024
Stores lure back-to-school shoppers with deals and ‘buy now, pay

later’ plans

By ANNE D’INNOCENZIO like class supplies and re-
and CORA LEWIS placing clothes and shoes
AP Business Writers that kids have outgrown.
NEW YORK (AP) — Mass mar- But like the winter holidays,
ket retailers in the U.S. are the back-to-school shop-
plying shoppers with offers ping season keeps starting
for computers, clothes and earlier. One reason is Ama-
other back-to-school essen- zon’s Prime Day. Rivals hop-
tials at affordable prices. ing to capture some of the
To seal the deal, they are online behemoth’s momen-
marketing “buy now, pay tum have helped make July
later” services as a way for a good month for discounts.
customers to spread out the Target, for example, offered
cost of going back to class 20 school supplies, includ-
in style. ing notebooks and colored
The strategies for secur- pencils, that together cost
ing sales are on display to less than $20. The discount
coax consumers, particu- retailer moved the sale to
larly those in lower income the third week of June from
brackets, into spending the first week of July a year
during the retail world’s sec- ago.
ond-most important period More people are using “buy
behind the winter holidays, now, pay later” services
retailers and analysts said. Shoppers pass clothing from Walmart’s No Boundaries brand at a Walmart Superstore in Secaucus, heading into the back-
Various forecasts project New Jersey, Thursday, July 11, 2024. Associated Press to-school season. In June,
back-to-school sales this $6.75 billion worth of online
year will be about the same which are typically cheaper ing for more discounts, par- cause of the laptop. She purchases in the U.S. were
or lower than last year. than nationally advertised ticularly when it comes to uses credit cards but prefers made with BNPL services,
Even as inflation has come brands. getting sneakers and jeans the four installment BNPL op- a 14.3% increase from the
down, the costs of food, “Inflation is the main thing for her children. She also tion because it splits up her same month a year ago,
rent and other necessities dictating the change in my planned to use a “buy now, costs over two months, inter- according to Adobe Ana-
remain much higher than spending,” Jasleen Reyes, pay later,” or BNPL, plan to est-free, instead of adding lytics data.
before the coronavirus pan- 43, a mother of three who buy a laptop for her 24-year- them to a monthly bill that Many shoppers appreciate
demic. High interest rates works as a hotel operations old son, a college student, would accrue interest if she the flexibility of “buy now,
have made it more expen- manager and lives in New and school uniforms for one were unable to pay off the pay later,” but consumer
sive to carry a credit card York City’s Harlem neighbor- of her teenage daughters. balance right away. advocates have expressed
balance. Savvy shoppers hood, said. Reyes estimates she will Unlike gifting holidays such concerns that the growth of
across the income spec- “Before it wasn’t so bad. spend $3,200-$3,400 on as Christmas and Valen- the payment method may
trum have proven willing to Now, I have to watch every back-to-school items this tine’s Day, the back-to- reflect financial stress and
shop second-hand and to dollar.” year, about $1,500 more school period is dominated ultimately leave Americans
buy store labels and brands, For Reyes, that means look- than last year mainly be- by spending on essentials in more debt. q

Court holds up Biden administration rule on airline fees while the

carriers sue to kill it

NEW ORLEANS (AP) — Con- ment rule requiring airlines 5th U.S. Circuit Court of Ap- dismayed with the court’s on bags and canceling or
sumer advocates are criti- to more clearly disclose peals in New Orleans said ruling. Caroline Ciccone, changing a reservation.
cizing an appeals court fees when they advertise Monday the rule “likely ex- president of the group Ac- Airline websites would have
decision that blocks a new prices for a flight. ceeds” the agency’s au- countable.US, said the new to show the fees the first
U.S. Transportation Depart- A three-judge panel on the thority “and will irreparably rule “is beyond reasonable time customers can see a
harm airlines.” for an industry notorious for price and schedule.
The judges found the rule to nickel and diming families Six carriers including Ameri-
be too detailed in its restric- to help fuel executive com- can, Delta and United,
tions. They granted a re- pensation and bonuses.” along with Airlines for Amer-
quest by airlines to tempo- Ciccone said Tuesday that ica, sued in May to block
rarily block the rule while a the judges were “all too the rule. The trade group
lawsuit filed by the carriers happy to give the airlines said then that the rule
plays out. what they wanted at the would confuse consumers
The Biden administration expense of everyday con- by giving them too much
published the rule, along- sumers.” information when buying
side another dealing with The industry trade group tickets.
airline refunds, in April as Airlines for America, which The panel of judges grant-
part of a campaign against joined the lawsuit against ed the airlines’ request to
what it calls junk fees. The the rule, declined to com- expedite their lawsuit and
Transportation Department ment. said the matter would
said the rule would save Under the rule, airlines and be moved up to the next
Passengers wait in a security line at Denver International Airport consumers more than $500 ticket agents would be available session for oral
on Wednesday, Feb. 22, 2023. million a year. required to disclose fees arguments.q
Associated Press Consumer advocates were for checked and carry-