Retailers who fail to promote back-to-college offers and savings this year do so at their own peril.
Families with college students will spend approximately $46 billion this summer, which accounts for nearly two-thirds of the anticipated $72.6 billion on both K-12 and college students, according to Deloitte’s "2017 Back-to-College Survey." More than two-thirds (68%) of parents expect that more than half of their back-to-college spending will be influenced by their students. Nearly 57% students plan to contribute more than half of the budget.
“Back-to-college shopping is prime time for retailers to create fans that can last a decade or more,” said Rod Sides, vice chairman, Deloitte LLP and U.S. retail, wholesale and distribution practice leader. “The students appear to have the most influence on what the family buys for back-to-college, so it makes sense for brands to create those loyalists today, and continue to see the payoff beyond the college years.”
Parents and student shoppers alike can’t pass up a good deal: Roughly half of back-to-college shoppers, both parents and students, plan to increase spending both online and in-store if sales tax reductions or tax holiday are offered. Also, 81% of students plan to buy from retailers who offer free shipping.
SHOPPING CHANNELS
This year’s survey results showed that channel preferences are shifting are among parents and college students. For both groups, top shopping channels included mass merchants (more than 70% of parents and students), on campus bookstores (roughly two-thirds of parents and students) and online-only retailers (more than half of parents and students).
Mass merchants, fast fashion apparel retailers and off-price stores are likely to realize the greatest increase as a shopping destination. Traditional department stores and specialty clothing stores are expected to plunge as purchase destinations for both parents and students.
In-store still remains the preferred shopping channel of parents and students. Parents expect almost half of their budget will be spent in store while students expect 41% in the same channel. However, students are more likely to shop online (35%) compared to parents (25%).
“The amount people are spending is about the same as last year, but what and where they’re buying may come with a couple of plot twists,” added Sides. “People say they’re buying fewer traditional college supplies in light of digital technologies in the classroom. While people expect most of their purchases to happen in the store, about one-quarter haven’t decided whether they will shop online or in store. At the end of the season, even if the same amount of money funnels into college-related spending, retailers that adjust their timing, experiences and assortment may be the only ones who reap the benefits from it.”