Parents’ back-to-school budgets are up nearly 12 percent this year, according to JLL’s 2026 Back-to-School Survey, and that’s good news for discount stores.

The report, released Thursday, saw the dollar store sector enter the survey’s top 10 list of parents’ most-cited shopping destinations. The sector’s rising star comes as Americans continue to tighten belts in the face of inflation. 

The brokerage’s online survey collected responses from 1,022 U.S. parents with children between the ages of 5 and 18. Its release coincides with the July back-to-school shopping surge, when 27 percent of surveyed parents plan to check off their children’s classroom wish lists. 

Over 90 percent of parents plan to shop at physical stores this year, according to the survey, and dollar stores and mass merchants dominated their spending plans. The popularity of cheaper retailers such as Dollar Tree and Walmart are no surprise –– the report found school shopping budgets rising 11.7 percent from last year, up to an average of $489 per child. The uptick runs well ahead of the current U.S. inflation rate of around 4 percent.

“Families are seeking retailers that respect their time and budgets, which explains why 68.7 percent cite saving money, and 35.1 percent prioritize finding the full school list in one place,” James Cook, JLL’s Americas director of retail research, said in a statement. 

The largest budget hike was found among middle-income families, who raised their spending expectations roughly 20 percent this year to $495 per child. The number of discretionary items on parents’ shopping lists fell in kind for the second consecutive year, meaning fewer fidget spinners and novelty pens will be landing in shopping carts.

Consumers are shopping more strategically, the report said, with stores like Dollar General and Dollar Tree gaining ground for their discounts, and mass retailers like Walmart taking the top spot for their one-stop-shop convenience. Walmart popularity rose 22.5 percentage points to reach 77.3 percent of parents surveyed, according to JLL. 

Catchall shopping centers that offer budget-friendly options alongside more speciality stores are predicted to win out in this year’s school shopping sprees, coinciding with the increasing dominance of inflated gas prices over household budgets.

“Centers that anchor on value formats while offering specialty depth can capture both high-volume traffic and high-spending customers,” Naveen Jaggi, president of JLL’s retail advisory services, said in a statement. “The winners will be landlords who intentionally curate for both ends of this barbell.”

Emily Davis can be reached at edavis@commercialobserver.com.