KPMG: Back-to-school shopping to start early, be discount driven

All signs point to more consumers shopping early and looking for discounts this back-to-school season even as they expect to spend significantly more due to higher prices.

That’s according to KPMG’s “2023 Consumer Pulse Back to School Survey,” which found that 62% of consumers this year have started or plan to start back-to-school before August 1, compared to 53% a year ago.

More than 60% of back-to-school shoppers are concerned with inflation and 70% of them will be looking for early discounts to counter higher prices on back to school items; 57% plan to buy cheaper brands.

Similar to 2022, back-to-school shoppers plan to do about 60% of their shopping in store, with Gen Z, millennials and higher income households more likely to shop online. Mass merchants remain the top channel for back-to-school shopping, with an expected 37% share of wallet.        

Additional findings from KPMG’s 2023 survey are below.

•Back-to-school shoppers expect to spend, on average, $377 per child, 21% more than a year ago.  Spending ranges from $212 per preschooler to $640 for first-year college student.

• Apparel, footwear and core school supplies, on average, will use 56% of each shopper’s budget, up slightly from 54% in 2022.

• Approximately 80% of shoppers consider apparel and footwear to be essential parts of back-to-school shopping.

•Significantly fewer households consider luxury items as part of their back-to-school budget this year, 37% versus 53% last year.

• Over 40% of back-to-school shoppers feel they are worse financially than a year ago, while 32% feel they are better financially.  

•Fewer BTS shoppers are worried about being able to afford food or basic household goods, down 9% from  2022.

•Of shoppers who plan to spend more per child on back-to-school items, 82% said it’s because items cost more more and 36% said it’s because they expect to replace more supplies.

“Inflation is pressing consumers to start early and find the deals from retailers willing to offer the door buster promotions that will drive traffic and excitement in a challenging environment,” said Matt Kramer, KPMG national consumer and retail sector lead. “Winning customers through great value and experience in tough times can go a long way to building long-term loyalty.”