![Group of young people walking and holding school supplies.](https://uschamber-co.imgix.net/https%3A%2F%2Fs3.us-east-1.amazonaws.com%2Fco-assets%2Fassets%2Fimages%2Fback-to-school-2024.jpg?auto=compress%2Cformat&crop=focalpoint&fit=crop&fp-x=0.6999&fp-y=0.3488&h=415&q=88&w=622&s=2475bac5ef102db011040f9c1345c67c)
Why it matters:
- The back-to-school shopping period from July to mid-September is the second biggest sales driver of the year after the holiday season.
- Americans are expected to spend $38.8 billion on clothes and supplies for children in grades K-12, and $86.6 billion on college students.
- Back-to-school is a key indicator of the mood of consumers as they head into the crucial holiday period.
Americans are poised to spend near-record amounts this year to get their children ready for school and college. But they aren’t too happy about it.
Surveys show consumers are feeling the pinch of higher household expenses, and are seeking sales, trading down, and making tough decisions about doing without in order to make back-to-school purchases.
More than half of back-to-school shoppers had begun making purchases by early July, and Prime Day events by Amazon and other major retailers in mid-July saw a surge of school-related expenditures.
Back-to-school season can be a key time to create relationships with customers, and businesses often don’t take full advantage of it, veteran retail trend watcher Nikki Baird, Vice President of Strategy and Product at retail technology company Aptos, told CO—.
While back-to-school gets attention as a major spending period, “it doesn’t always get due recognition for the unique role it plays in nurturing consumer trust and delivering on store expectations,” Baird said.
“If retailers deliver a subpar experience during the back-to-school season, it will negatively impact their standing when consumers consider their holiday shopping plans,” she said.
According to the National Retail Federation, Americans are expected to spend $38.8 billion on back-to-school items for children in grades K-12, and $86.6 billion for college-age children.
Surveys of shoppers and reports from retailers point to five back-to-school shopping trends that businesses need to be aware of to win over customers.
Shoppers are feeling strapped and are looking to save
The 2024 Back-To-School survey by accounting and consulting firm Deloitte found that low- and middle-income families are planning to reduce their back-to-school spending, and that even high-income parents are juggling expenses.
Nearly half of parents said they have less money to spend this year, with 73% saying they are feeling squeezed by higher costs for everyday purchases, groceries, health care and child care.
Consumers said they plan to search for deals by shopping across more retail formats and visiting discounters. They also will switch brands or buy private label if their preferred brand is too expensive.
Most parents, however, see school supplies and clothing as essentials, rather than discretionary, according to Katherine Cullen, Vice President of Industry and Consumer Insights at the National Retail Federation. “It’s something that they view the student as really needing,” Cullen said. “They will look for ways to make every dollar count, but they will continue to prioritize these areas of spend.”
[Read: How ‘Retail Concierges’ (Both Digital and Human) Are Poised to Disrupt the Shopping Experience]
Kids will influence their parents to spend more — so businesses should engage them with ‘a fun and memorable shopping experience’
The Deloitte survey found that the majority of parents – 85% — will splurge and stretch their budgets for a must-have brand or purchase that a child wants for school. Close to two-thirds, 61%, said their children’s preferences typically influence them to spend more.
Deloitte recommends that businesses take advantage of this by engaging children in the shopping journey. “By creating a fun and memorable shopping experience for children, retailers could increase their appeal to parents and encourage impulse purchases,” it suggests.
Deloitte also found that the use of generative AI, which produces original content from just a key phrase or brief description prompted by a human, is an emerging trend, with 18% of parents planning to use the technology while doing research to inform purchasing decisions such as scanning product reviews, for example, and to save time and money.
Tap the opportunity to promote discretionary splurge items later in the back-to-school season
Parents told researchers they started buying back-to-school supplies earlier than ever this year in hopes of getting the best deals. Evidence of that early deal-hunting was seen during Prime Day sales events in mid-July, when Amazon merchants and nearly all major retailers offer deep discounts to lure shoppers. Online sales for supplies such as backpacks, lunchboxes, and stationery jumped 216% during the two-day Prime Day period, compared to daily sales levels in June, according to Adobe Analytics. Spending on children’s clothing was up 165%.
Parents who found deals on essentials during the Prime Day sales may have room in their budget for discretionary or splurge items in September, presenting an opportunity for businesses to promote those kinds of items.
[Read: Future Shop: Retail Innovations That Will Change How Consumers Spend in 2024 and Beyond]
Shoppers increasingly are using social media and AI
Parents told Deloitte that they are using social media and artificial intelligence (AI) to find the right back-to-school items at the right price.
One out of three K-12 parents said they would use social media sites to assist their back-to-school shopping, up eight percentage points over last year. One in eight parents planned to make a purchase on social media, up six percentage points from last year.
Businesses, Deloitte reported, should be aware that two out of three social media users follow the social media channels of their preferred retailers.
Deloitte also found that the use of generative AI, which produces original content from just a key phrase or brief description prompted by a human, is an emerging trend, with 18% of parents planning to use the technology while doing research to inform purchasing decisions such as scanning product reviews, for example, and to save time and money.
Leaning into the resale market: Hand-me-down tech and apparel can be cool for school
Research from both the National Retail Federation and Deloitte found strong acceptance for secondhand purchases for back-to-school items like electronics and apparel. Growing concerns about sustainability and circularity along with the desire to save have resulted in 74% of parents saying they don’t feel guilty about sending their children to school with pre-owned items, according to Deloitte.
The number of parents who told Deloitte they buy pre-owned items when available was 43%, up from 40% last year, with tech products and apparel being the top items.
The National Retail Federation survey showed support for secondhand purchases of clothing, electronics, and even shoes, and found that 71% of K-12 students and 67% of college students say it is important to them that their purchases be sustainable and environmentally friendly.
This creates an opportunity for businesses to expand their secondhand assortments, and to provide more information about sourcing and sustainability, Deloitte reported.
CO— aims to bring you inspiration from leading respected experts. However, before making any business decision, you should consult a professional who can advise you based on your individual situation.
CO—is committed to helping you start, run and grow your small business. Learn more about the benefits of small business membership in the U.S. Chamber of Commerce, here.