Back-To-School 2024: Shopping Trends and Tips to Stay Competitive in a Slowing Market

The back-to-school season is an exciting time for parents, children and businesses alike. Parents scramble for deals to buy the perfect backpacks and jeans for their kids while the young ones dream of the coolest sneakers and latest gadgets. Traditionally, this time of year is a retail boom, but 2024 is shaping up to be a different story. While the excitement of new school supplies and fresh wardrobes remains, economic pressures cast a shadow over consumer spending habits.

According to the 2024 Deloitte Back-to-School Survey¹, total spending on Kindergarten to12^th grade (K-12) students is expected to hold steady at $31.3 billion in North America, translating to approximately $586 per student. While this might seem like a substantial figure, it’s important to consider the broader economic context. Inflation and rising living costs are forcing parents to be more strategic with their budgets.

Early Bird Gets the Discounts

One of the most striking trends emerging this year is the rush to shop early. Approximately 66% of parents surveyed planned to complete their back-to-school shopping by the end of July, up from 59% in 2023. This shift can be attributed to several factors, including a desire to secure the best deals before prices rise, concerns about potential stock shortages, and a general need to spread out expenses throughout the shopping season.

Shifting Spending Priorities

While classic back-to-school items like clothing and school supplies remain essential, spending habits are evolving. Parents are allocating more funds to categories like personal hygiene and educational furniture, reflecting a growing emphasis on overall student well-being and creating conducive home learning environments.

Conversely, spending on technology products is declining by 11% year-over-year, possibly due to the increasing cost of devices and the fact that many households are already well-equipped.

The Omnichannel Experience

With 80% of back-to-school spending expected to occur through multi-channel retailers in 2024, up from 73% the previous year, it's clear that consumers are embracing the convenience of shopping both online and in-store.

The ability to research products online and then physically examine them in-store, or vice versa, has become the preferred shopping behaviour for many. The rise of in-store pickup and buy online, pick-up in-store (BOPIS) options have further fueled the growth of omnichannel shopping as 33% of online shoppers plan to utilize the (BOPIS) option, up from 21% in 2023.

Value and Convenience

Mass merchants and online retailers are emerging as the top shopping destinations, capturing 77% and 65% of shoppers' preferences, respectively.

To win over budget-conscious consumers, retailers must emphasize competitive prices, bundle deals, and loyalty programs. Seven in ten consumers demand seamless shopping experiences, including convenient locations, easy returns, and flexible delivery options.

Old is Gold

A significant 40% of consumers across all income groups plan to purchase used or refurbished items for back-to-school, a five-percentage point increase compared to 2023.  Technology and apparel are the leading categories in the pre-owned market, with 28% of consumers expressing interest in buying used products.

Extracurriculars and Self-Care

The back-to-school season extends beyond textbooks and uniforms. The majority of parents, 86%, are enrolling their children in extracurricular activities, with an average spending of $582 per child. This highlights the growing importance of holistic child development.

Interestingly, 50% of parents are also taking the opportunity to treat themselves to some retail therapy while shopping for their kids, so consider options for mom and dad when preparing your back-to-school deals. For example, you can create promotions specifically targeting parents, such as discounts on coffee or spa services.

The Impact of Social Commerce

Social commerce is rising, with one in three parents using social media platforms for shopping research, and one in eight planning to purchase on social media. From Facebook marketplace and Instagram ads to TikTok Shop, shoppers are on the hunt for good deals on social media.

Take Note: Key Back-to-School Takeaways for Your Business

The back-to-school season is a crucial period for retailers to capture a significant portion of annual sales. To maximize success, it's essential to understand the evolving consumer landscape and adapt strategies accordingly.

Here are some additional takeaways for your business:

Understand Evolving Consumer Needs

• Deepen your customer understanding: Conduct thorough research to identify changing consumer needs, preferences, and behaviours.
• Focus on value: Emphasize value propositions rather than solely relying on discounts. Offer quality products, exceptional customer service, and unique benefits.
• Personalization: Utilize data to tailor product offerings and tailor marketing messages to specific customer segments.

  

  Innovative Product and Service Offerings

• Niche products: Identify underserved niches or emerging trends to create unique product offerings.
• Sustainability: Highlight eco-friendly and sustainable products to appeal to environmentally conscious consumers.
• Value-added services: Offer complementary services like personalized styling, product customization, or installation to attract more customers.

  Enhanced Customer Experience

• Omnichannel strategy: Ensure a seamless shopping experience across all channels including online, in-store, and on-the-go.
• Customer loyalty programs: Reward repeat customers with exclusive offers, early access to sales, and personalized recommendations.
• Flexible return policies: Build trust by offering hassle-free returns and exchanges.

  Marketing and Promotions

• Content marketing: Develop high-quality content that educates and inspires customers.
• Social media engagement: Foster a strong online community through interactive campaigns and contests.
• Limited-time offers: Create a sense of urgency with exclusive deals and promotions.

By implementing these strategies, brands, retailers and small businesses can adapt to the changing market dynamics and maintain a competitive edge during the back-to-school season and beyond.

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1. chrome-https://www2.deloitte.com/content/dam/insights/articles/us187343_cic_b2s_2024/DI_2024-BTS_Final.pdf