Deloitte: Back-to-school shoppers focused on value over retailer loyalty
Back-to-school shoppers have different priorities this year — including buying used items.
That’s according to Deloitte’s annual back-to-school survey which found that parents are prioritizing value over brand and retailer loyalty. A majority (67%) will shift brands if the preferred brand is too expensive, 62% will shop at a more affordable retailer and 50% will shop for private labels over name brands.
The survey also revealed spending priorities are shifting in favor of new trends. While spending on clothing and school supplies remain unchanged year-over-year, spending on tech is down 11%. However, spending on other products such as personal hygiene and educational furniture is up 22%.
Circularity comes to the forefront as more families plan to purchase used items to maximize value further: Four-in-10 (across income groups) surveyed expect to buy a used or refurbished item this season, up five percentage points among both middle- and high-income families. Technology and apparel lead the charge among pre-owned products (both at 28%).
Other findings from the “2024 Deloitte Back-to-School Survey” are below.
•In search of deals, parents plan to shop across 4.7 retail formats on average, up from 3.9 in 2023, and may sacrifice loyalty to stay within budget. Mass merchants (77%) and online retailers (65%) are the top destinations.
•Parents are planning to make the most of early discounts, with 66% of spending expected to occur by the end of July (up from 59% last year).
•Back-to-school spending for K-12 students will likely remain flat, estimated to reach a collective $31.3 billion, or approximately $586 per student, according to those surveyed.
•Despite financial concerns, 85% of surveyed parents would splurge on their child's must-have back-to-school products, and 50% would shop for themselves.
•In addition to spending on back-to-school products, 86% of surveyed parents enrolled their children in extracurricular activities and plan to spend $582, including fees and equipment.
“We expect back-to-school spending to be flat to down modestly when adjusted for inflation, mainly driven by middle-income families juggling financial priorities and ongoing inflation perceptions,” said Stephen Rogers, managing director, Deloitte Insights Consumer Industry Center, Deloitte Services LP. “Retailers can expect headwinds to volume and loyalty as consumers seek to save money. However, wanting to please their kids, retailers will likely have opportunities to harness the indulgences parents are willing to make.”
Deloitte’s back-to-school survey was conducted online using an independent research panel between May 22 - 30, 2024, and surveyed 1,198 parents with at least one child attending school in grades K-12 this fall.
