Back-to-school (BTS) shopping is a significant retail season in the United States, typically occurring in the middle to late summer before schools resume throughout the country. It involves purchasing a wide range of products such as school supplies, clothing, electronics, and more.
Behavioral Audience:
The start of the school year marks a significant moment for consumer shopping in the US. As the CEO of the NRF remarked: “Our investigation for 2023 reveals that American shoppers are enthusiastic about kickstarting their back-to-school and college buying well in advance." Retailers have dedicated months to making certain their shelves are filled with the necessary products that families and students require for the academic year. The annual survey jointly conducted by the NRF reveals that there are anticipations of consumers setting new spending records for both back-to-school and back-to-college shopping in the current year. The survey released that back-to-school expenditures are projected to climb to an unprecedented $41.5 billion, a notable increase from the $36.9 billion spent the previous year and even surpassing the prior peak of $37.1 billion in 2021. Furthermore, back-to-college spending is predicted to surge to a substantial $94 billion, marking a substantial increase of about $20 billion compared to the record set in the previous year.
The expected spending rise is mostly due to greater interest in electronics. About 69% of back-to-school shoppers plan to buy electronics or computer-related items this year, up from 65% last year and the highest ever recorded. The total spending on electronics is projected to hit a record $15.2 billion. The top electronics on shoppers' lists are laptops (51%), tablets (36%), and calculators (29%), similar to previous years. Almost half (43%) of those spending more than last year are doing so because they need more new items, up from 32% the previous year. An additional third (32%) attribute their increased spending to needing big-ticket items like computers, phones, calculators, and dorm furnishings. The combined spending on these significant items and necessities like food contributes to over half of the total back-to-college spending increase this year.
Across all back-to-school shoppers, the primary shopping destinations are online, department stores, and discount stores. "While consumers plan to spend more on school and college-related items this year, they are still focused on finding the best value and deals," noted Phil Rist, Executive Vice President of Strategy at Prosper. "Consumers are being budget-conscious by comparing prices, considering non-brand or store-brand items, and showing a greater preference for shopping at discount stores compared to last year."
Back-to-school shopping is well underway, with 55% of consumers buying for the occasion having already begun by early July. This matches last year's pace and represents an increase from 2019's 44%, aligning with the trend of early shopping for major events.
Market Research:
Parents & Guardians: When it comes to Back-to-school shopping, parents and guardians play a pivotal role in the market, securing essentials for their school-going children. This subgroup is mainly focused on acquiring key items like clothing, accessories, and fundamental school supplies such as books, pens, and backpacks. However, what's particularly notable is the significant growth in purchasing school-related electronics over the years.
In the year 2023, a remarkable shift has been observed as nearly 70% of parents in the United States have expressed intentions to invest in computer-related items, showcasing a substantial 15% surge compared to their purchasing behavior a decade ago.
Another compelling trend among parents is the increasing preference for preconfigured supply kits, which educational institutions offer to streamline the procurement process. These kits have gained favor due to their practicality, cost-effectiveness, and sometimes obligatory nature, making them an attractive option for many parents.
Parents' most notable spending category revolved around electronics and computer-related equipment in 2021. By 2023, the anticipated increase in average household spending for this subgroup was set to reach around $325 USD. While parents explored a variety of outlets for their back-to-school purchases, online platforms emerged as the leading destination for such items. Over half of the surveyed respondents expressed plans to conduct their shopping online. Department and discount stores shared the second-place spot in popularity as shopping venues for this subgroup.
Moreover, it's worth highlighting that families with school-age children represent a noteworthy target audience for the Back-to-school shopping season. Specifically, families with children spanning from elementary to high school levels are anticipated to allocate an average of $890.07 on back-to-school items this year. This figure demonstrates an approximate $25 increase from the previous year's record of $864.35, establishing a new high in spending within this subgroup.
College Students: College students represent a significant target audience for Back-to-School shopping. Anticipated college student and family expenditures are set to reach an average of $1,366.95 per individual, marking an increase from the previous year's $1,199.43 and surpassing the previous record of $1,200.32 set in 2021. The surge is noteworthy as back-to-college spending has nearly doubled since 2019.
Businesses: The Back-to-School period holds critical significance for businesses, as they actively engage with various strategies to support and connect with key audiences. This engagement can encompass a range of activities that resonate with both students and families as they prepare for the new school year.
In alignment with this, the Back-to-School season witnesses a flurry of consumer activity:
Back-to-School Deals: A significant 70% of consumers intend to shop at discount stores, marking a five-percentage-point increase from last year, establishing it as the favored retailer type for back-to-school shopping.
Sale-Driven Purchases: Almost half (45%) of shoppers are seeking items on sale due to higher prices and inflation, while 38% plan to opt for more budget-friendly brands.
Influence of Promotions: An overwhelming 91% of shoppers admit that promotions impact their back-to-school purchases, and 90% are considering the effects of inflation and rising prices.
Budget Focus: About three-fourths (72%) of respondents are adhering to a strict budget this year.
Timing of Purchases: The majority of back-to-school shoppers are aiming to make their purchases later in the season, with 44% of spending anticipated in August.
Spending Priorities: Electronics will account for the most substantial portion of consumers' expected spending ($261). Notably, school supplies have experienced a significant increase in spending in recent years ($168, up from $137 in 2022). Other prominent spending categories include apparel ($233), furniture ($205), and sporting goods ($102).
Recommendations for Engaging with Specific Audiences:
Parents & Guardians:
Enhance Online Shopping Experience: Recognizing the preference for online shopping among parents, retailers should invest in user-friendly online platforms. Streamlined navigation, clear product descriptions, and secure payment options can boost confidence in online purchases.
Promote Electronics: Given the growing interest in school-related electronics, businesses should spotlight their electronic offerings. Special bundles, informative guides, and demonstrations can help parents make informed decisions.
Tailored Supply Kits: Leveraging the trend of preconfigured supply kits, retailers can offer curated bundles that cater to specific grade levels. Clearly communicating the contents, cost savings, and convenience can attract parents seeking a hassle-free solution.
College Students:
Digital Engagement: College students are tech-savvy, so businesses should focus on digital marketing strategies. Engaging social media campaigns, interactive online events, and student-specific discounts can resonate well with this demographic.
Tech-Centric Products: Given the surge in electronics spending, businesses should highlight tech-centric products. Offering student discounts on laptops, software, and accessories can incentivize purchases.
Partnerships with Campuses: Collaborating with college campuses for events, promotions, or exclusive offerings can help businesses directly reach students where they spend most of their time.
Businesses:
Innovative Promotions: Building on the importance of promotions, businesses can offer creative deals that cater to diverse consumer needs. Limited-time offers, bundle discounts, and loyalty programs can attract attention and drive sales.
Budget-Friendly Options: Recognizing the budget-conscious mindset, businesses should emphasize their range of budget-friendly products. Highlighting affordable quality items can resonate with shoppers looking for value.
Early-Bird Campaigns: Given the timing preference for late-season purchases, businesses can introduce early-bird promotions to capture sales from the 44% planning to spend in August. This can create a sense of urgency and encourage earlier shopping.