Why it matters:
- Back-to-school spending in the U.S. is forecast to reach record highs this year. Americans are expected to spend $41.5 billion on K-12 students, and $94 billion on purchases for college students.
- While still looking for deals and values, consumers are less concerned about inflation than last year.
- Consumers plan to do most of their shopping in stores, making this a key time for businesses to connect with new and existing customers.
This year’s back-to-school season is shaping up to be a winner for retailers and other businesses that help parents and children get ready for school and college.
The National Retail Federation is predicting back-to-school and college spending will reach record heights this year, with parents saying they plan to spend $41.5 billion on K-12 students and $94 billion on college students.
Most consumers plan to do the bulk of their back-to-school shopping in stores, according to a survey by retail analytics and solutions company Sensormatic. That survey found that 79% of consumers plan to shop in stores, up from 76% last year, showing that the back-to-school season continues to be a key time for drawing shoppers to stores.
Here are five trends smart businesses can use to their advantage this back-to-school season:
Families want the in-person back-to-school experience
Back-to-school shopping is a ritual that parents and kids treasure, and retailers who embrace that experience can reap rewards, experts say.
Parents use back-to-school shopping as a way to get youngsters excited about the upcoming school year and let them help pick out outfits and school supplies like backpacks and lunchboxes.
It also is a time of year when parents may find in-person shopping more convenient than online.
Back-to-school “is a unique event because it often involves trying on new clothes and other activities which may be easier within a store than through several iterations of online purchases and returns,” Matt Pavich, Director of Strategy and Innovation for Revionics, which is part of retail tech company Aptos, told CO—.
Businesses large and small can lean into the back-to-school experience by hosting parent-child shopping events, and creating kid-friendly merchandise displays with kids-eye-level views of school supplies.
[Read: How Top Marketers Are Capitalizing on the $360 Billion U.S. Mobile Commerce Market]
Consumers are less worried about inflation, but still want deals
The Sensormatic survey found that while most consumers are less worried about inflation and the economy than last year, price still is a top consideration for them.
Shoppers also are more interested in store promotions and deals, according to the survey, with 30% saying they would be seeking them out and making purchases based on discounts, up from 24% last year.
Walmart and Target, as they have in the past, are emphasizing value with heavily promoted low prices on basic school supplies like crayons and notebooks.
Walmart announced it had kept school supply prices at the same level as last year, and that parents could buy the 14 most popular items for a total price of $12.94.
Target announced that it was pricing basic school supplies as low as 25 cents.
Businesses large and small can lean into the back-to-school experience by hosting parent-child shopping events, and creating kid-friendly merchandise displays with kids-eye-level views of school supplies.
Market share for back-to-college home merch is up for grabs
The demise of Bed Bath & Beyond has left close to $3 billion in back to college spending available for other retailers to win. The bankrupt home furnishings chain previously dominated the dorm furnishings market, and its sudden collapse meant other retailers didn’t have time to ramp up their back-to-college assortment, or marketing.
Bed Bath & Beyond typically rang up close to $3 billion dollars in sales in June, July, and August, much of that reflecting purchases of sheets, towels, wastebaskets, and other furnishings for dorm rooms.
The Container Store chain is benefiting this year from a partnership with online dorm furnishings retailer Dormify that was in place before Bed Bath collapsed.
The storage retailer has set up Dormify shops in five of its stores, and created Dormify displays in an additional 35 stores. It’s also selling 90 Dormify items on its website.
Ad campaigns target kids as key decision makers
The back-to-school season is a time when kids are encouraged to make purchasing decisions, and to pick the clothes and sneakers they want to wear, or the backpack they carry. Marketing campaigns increasingly are talking to kid shoppers, rather than parents, at back-to-school time.
A Deloitte back-to-school survey found that even when parents are concerned about finances, they will splurge at back-to-school time if it makes their child happy.
Brands are using influencers and social media to reach kid consumers. Backpack brand Jansport this year has a campaign that uses videos from key influencers, as well as consumer-generated videos about adventures with their backpacks.
[Read: How To Turn Deinfluencing Into a Marketing Opportunity]
Serving up convenience is key — from curated back-to-school essentials via app to digital classroom supply lists by zip code
Curated back-to-school assortments, one-click bundles of all the essential school supplies, and lists of what their local school district is requiring students to bring to class help parents organize their kids’ shopping needs at a busy time of year.
Walmart, Target, and Kohl’s have made it easier for parents to do one-click purchases of basic school supplies, and to access classroom lists and student and teacher wish lists through their apps and websites.
Walmart lets parents instantly add all of the required items on a classroom supply list by entering the zip code, and selecting the school and teacher.
Target has a similar time-saving tool, called School List Assist.
Kohl’s is featuring curated back-to-school assortments on its website and app, and lets shoppers store and spend their Kohl’s coupons and cash-back rewards on the app.
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.
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