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Back-to-school shopping isn’t just about filling a backpack anymore. Parents want affordable basics. But they also want clothes and accessories their kids will actually be excited to wear.In 2025, families with students in elementary through high school were aiming to spend an average of $858.07 on clothing, shoes, school supplies, and electronics, according to the National Retail Federation.What this means is that even parents on a budget are willing to stretch financially if it means getting their hands on stylish trends.That’s the opportunity Target is chasing this year.Target recently unveiled its 2026 back-to-school and back-to-college assortment with a heavy emphasis on two things — style and newness. That’s a smart combination.Style matters almost as much as priceIn today’s economy, parents are watching every dollar.Deloitte’s 2025 Back-to-School Survey found that parents approached shopping last year with a healthy dose of restraint. Given that inflation is even more elevated this year than it was the same time last year, it’s fair to assume that parents will be spending cautiously in the coming weeks. Related: Costco reveals why Kirkland keeps beating name brandsKnowing that, Target is aiming to strike the balance between fashion-forward and price-conscious. The company is rolling out thousands of new products across apparel, school supplies, dorm décor, and accessories while leaning into trend-driven brands and exclusive collections designed to make shopping feel a little more fun. At the same time, it’s keeping prices low on many essentials, with school supplies starting at less than $1 and thousands of items priced under $20.And the fact that Target is on the ball could help its bottom line tremendously.Parents are shopping earlier this year as higher food and gas prices continue to squeeze household budgets, says Reuters. Rather than wait until August, many families are hunting for deals throughout the summer in an effort to spread expenses across multiple paychecks. Given that the typical family is expected to spend $922 on back-to-school shopping this year, according to PwC, that’s important.

Target is keeping prices low on many essentials, with school supplies starting at less than $1 and thousands of items priced under $20.Shutterstock

It’s a smart play for TargetTarget’s latest push isn’t just about selling school supplies. It’s about giving shoppers another reason to ditch rivals like Walmart and Amazon during one of retail’s biggest shopping seasons.Back-to-school is second only to the holidays for many retailers, making it a critical opportunity to bring families into stores and onto their websites. More Retail:Costco sees major shift in member behaviorRetail chain shuts all locations as legal changes hit industryCostco makes major investment in online shopping for membersOnce shoppers are browsing for school supplies, they’re also likely to pick up groceries, home goods, beauty products, and other everyday purchases. That’s why Target’s strategy makes so much sense.In an environment where consumers are scrutinizing every purchase, the retailer isn’t competing on price alone. It’s trying to convince parents they can save money and buy products their kids will be excited to use.Target’s back-to-school push is also consistent with the pledge it made during its most recent earnings call to focus on fresh, exciting inventory while being mindful of cost.”Where we’re investing in product newness, we’re investing in elevating the guest experience,” CEO Michael Fiddelke said during the call.”You can expect us to keep the foot on the gas to make sure we’re always bringing the freshest and latest assortment,” he added.If Target pulls off a successful back-to-school season, it could boost the company’s bottom line. It could also strengthen customer loyalty heading into the all-important holiday shopping season.Maurie Backman owns shares of Target.Related: Target makes its smartest $1 billion investment yet

Tesla (TSLA) has introduced the stretched Model Y L electric SUV in the U.S., effectively expanding its most successful EV into another segment.It can cost billions to develop an all-new car from scratch. Rather than go that route, Tesla has stretched the Model Y platform to target the popular family-oriented segment of the market, while leveraging existing manufacturing and engineering systems. The new EV also fills the gap left by the discontinued Model X.EV demand has become less predictable, and profitability is under pressure. Tesla’s decision to capitalize on a best-selling nameplate in the lucrative U.S. market may be one of the automaker’s smartest strategic moves.Tesla builds on Model Y success storyThe Tesla Model Y has become the driving force behind the carmaker’s business, consistently ranking as its top-selling vehicle in America and globally.The new Model Y L is expected to build on this tremendous success, Autoblog notes. Outwardly similar to the normal Model Y, the new derivative is approximately seven inches longer.The extended body length and wheelbase primarily benefit third-row passengers, who now have much more space than in the standard model, which is available with a cramped third row. Tesla has also added amenities inside the Model Y L, and cargo space has increased.More Tesla:Tesla’s $1.4 trillion valuation rests on what happens next in one cityTesla is doing in China what it couldn’t do in the U.S.Tesla’s blowout quarter comes with a warning signThe new SUV starts at $61,990 in the U.S. for the Launch Series, over $20,000 more than the smaller Model Y but significantly less than the recently discontinued Model X, which was previously Tesla’s flagship SUV.Sales of the Model Y L have been strong in China, despite tough competition from BYD, reports Reuters. This validates Tesla’s decision to introduce the model in the U.S., given that market’s appetite for family-friendly three-row crossovers. The strategy has allowed Tesla to expand its U.S. range with a proven nameplate, rather than invest billions in an all-new vehicle.

Tesla has stretched the Model Y platform to target the popular family-oriented segment of the market.Tesla

Why Tesla’s move could be profitableBy developing a larger vehicle from an existing platform, Tesla can lower development costs and reduce manufacturing complexity. The higher price point should improve margins, and more expensive derivatives are expected to arrive at a later stage.Related: BYD’s Tesla win comes with a hidden warningThe Model Y has been the best-selling EV in the U.S. for several years, with 357,528 units sold in 2025. The Model 3 sedan was a distant second, recording 192,440 sales, according to a Cox Automotive EV report.Between these numbers and Tesla’s record Q2 2026, the signs point to the Model Y L being a significant success in the United States.What it means for Tesla’s futureTesla is optimizing its lineup rather than expanding it with all-new products. Its automotive growth strategy could revolve around more variations of existing models, rather than all-new products that are costly to develop.The minimal resources deployed to develop and build the Model Y also allow Tesla to focus on other key aspects of its business beyond the automotive sector. Alongside its autonomous driving technology, the company is also focused on its AI, energy storage, and robotics divisions.The success of Tesla’s auto business is key to supporting other projects, which is why it needs the Model Y L to succeed.The company’s strong Q2 deliveries didn’t satisfy investors, with stocks falling by 8%, reports Forbes. Wall Street wants to see strong profits, not only strong sales, which is why a higher-margin vehicle like the Model Y L becomes increasingly valuable.If the Model Y L’s strong performance in China is repeated in the U.S., Tesla will have shown that building upon its current lineup can be more profitable than launching all-new models. In a challenging EV market, that could be a major competitive advantage.Related: Elon Musk sends wakeup call on runaway AI spending