The annual Deloitte Back-to-School Survey reveals parents of K-12 school children are weighing prices and priorities in preparation for the classroom return, budgeting for necessities, but they are making room for a few indulgences.
The survey also checked in on broader developments, determining that more parents see their children using GenAI for their schoolwork than was the case last year, at 23% versus 15%. Yet, they are divided on its benefits, as 35% agree that technology is a positive tool for academic performance and overall learning experience, while 33% disagree. For their part, 18% of parents plan to use the GenAI when shopping, according to the business services firm.
Back-to-school spending for K-12 students will likely remain flat at $31.3 billion or $586 per student, Deloitte stated.
Parents plan to make the most of early season promotions, with 66% of spending set to occur by July’s end, up from 59% in the 2023 period. Overall, surveyed parents said their goal is to make the most of early discounts, with 66% of spending expected to occur by the end of July, up from 59% in 2023. Among survey respondents, 59% believe the best deals occur earlier in the season versus 41% who think they appear later. Parents queried in the survey said they intended to decrease their spending on technology products by 11% year-over-year while increasing spend on other categories, such as personal hygiene and educational furniture, by 22%. The outlay on clothing and school supplies should little change, Deloitte indicated, and account for most back-to-school spending, remaining steady year over year at $12.6 billion and $7.4 billion, respectively.
Respondents said they value and convenience, with mass merchants, at 77%, and online retailers, at 65%, coming in as the top back-to-school shopping destinations, followed by offpricers and department stores tied at 39%. Multichannel retailers should account for 80% of the total back-to-school intended spend, up from 73% last year, as 70% of families plan to shop in-store and online, up from 66% in 2023, Deloitte maintained. Seven in ten respondents indicated that they’re seeking convenience, especially when it comes to delivery options and easy returns, making it the number one driver for where consumers plan to spend the most. As they search for deals, parents will shop across 4.7 retail formats on average, up from 3.9 in 2023, and may sacrifice loyalty to stay within budget.
Despite financial concerns, 85% of surveyed parents said they would splurge on a child’s must-have back-to-school products. At the same time, 50% of respondents said they would shop for themselves.
As they navigate back-to-school season, families are balancing between selecting what children need and splurging on the novelties that entice, Deloitte noted. The cost of school supplies has increased by 24.5% over the past four years, as per the United States Bureau of Labor Statistics’ Consumer Price Index. Deloitte’s ConsumerSignals research found that 73% of consumers are concerned about rising prices for everyday purchases. In looking at household economies, Deloitte found that many consumers will attempt to cut back on expenses broadly, with 64% of low-income earners, 57% of middle-income earners and 39% of high-income earners doing so and/or delaying major household purchases at 52% of low-income earners, 45% of middle-income earners, and 35% of high-income earners.
Most parents plan to enroll their children in extracurriculars, spending an average of $582 per child, as 73% consider the expense an investment in their child’s future.
Despite their budgeting mentality, 85% of parents surveyed said they could be influenced by their children to splurge on popular products and brands.
Circularity is gaining as more families plan on purchasing used items to maximize spend, with four in ten respondents saying they expect to buy a used or refurbished item this season, up five percentage points among both middle- and high-income families. Technology and apparel lead the pre-owned purchasing intention, each at 28%.
At the same time, social commerce is on the rise among K-12 parents. One in three respondents said they plan to use social media sites to assist in their back-to-school shopping, up eight percentage points year-over-year. In addition, one in eight plan to make a purchase on social media, up six points from last year.
“Families are searching for deals and prioritizing value and convenience to save wherever possible. This dynamic creates an opportunity for retailers to take some of the anxiety out of the season by extending loyalty programs and incentives. In addition, building a seamless omnichannel approach could better position retailers to see consumers coming back throughout the season,” said Brian McCarthy, principal, Retail Strategy, Deloitte Consulting, in announcing the survey results.
