Parents planning back-to-school purchases have increased spending budgets by nearly 12 percent in 2026, yet this bump in dollars is steering shoppers toward discount retailers rather than traditional department stores. JLL's 2026 Back-to-School Survey reveals a notable shift in consumer behavior, with dollar stores entering the top 10 list of parents' preferred shopping destinations for the first time.

The trend reflects broader economic anxiety among American households. Despite higher budgets, families remain cautious about inflation and are prioritizing value-focused purchasing. This dynamic benefits discount chains, which have captured growing market share as consumers seek bargains on school supplies, clothing, and shoes.

For commercial real estate investors, this signals sustained demand for dollar store locations and discount retail space. Landlords leasing to chains like Dollar General, Dollar Tree, and Family Dollar should expect continued tenant strength and steady rent collection. These operators have proven resilient in inflationary environments and continue expanding footprints in both urban and suburban markets.

Traditional department stores and mid-market retailers face headwinds. Higher foot traffic and sales at discount competitors mean reduced customer visits to conventional shopping centers and malls. Anchor tenants in traditional shopping centers may see traffic decline, pressuring lease renewals and rent negotiations.

For consumers, this shopping pattern carries trade-offs. Discount stores offer lower unit prices but often carry limited selection and lower quality goods. Parents may save on individual items but spend more time comparison shopping across multiple locations.

The survey underscores that Americans view inflation as an ongoing concern. Even with larger budgets, households refuse to pay full price. This consumer psychology will likely persist through the fall back-to-school season and influence holiday shopping patterns later in the year. Retailers betting on traffic recovery at premium locations may face disappointment. The discount sector has become the default shopping choice for value-conscious families managing household budgets under economic