Although market research on the emerging back-to-school and college season has been somewhat mixed, the KPMG 2023 Consumer Pulse Back to School Survey indicated that more consumers will shop early and hunt for discounts as they still expect to spend significantly more due to higher prices.
Key findings in the 2023 survey include:
- Back-to-school shoppers expect to spend, on average, $377 per child, 21% more than a year earlier with intentions ranging from $212 per preschooler to $640 for first-year college students.
- As the shopping season got underway, 62% of consumers said they started or plan to start back-to-school shopping before August 1 compared to 53% a year ago.
- Just over 40% of back-to-school shoppers feel they are worse off financially than a year ago compared to 32% who feel they are better off financially.
- More than 60% of consumers are concerned with inflation, 70% will be looking for early discounts to counter higher prices on back-to-school items and 57% intend to buy cheaper brands.
- Of the 52% who plan to spend more per child on back-to-school items, 82% said it’s because items cost more and 36% said it’s because they expect to replace more supplies.
- Among the 17% anticipating less back-to-school spending, 48% said they have less money to spend on school supplies and 45% need fewer items.
- Apparel, footwear and core school supplies, on average, will eat up 56% of each shopper’s budget, up slightly from 54% in 2022.
- Mass merchants remain the top channel for back-to-school shopping with shoppers prepared to hand them a 37% share of wallet.
- Consumers expect to spend 2% more with online-only retailers this back-to-school season.
As was the case in 2022, back-to-school shoppers plan to do about 60% of their shopping in store, with Gen Z, Millennials and higher-income households more inclined to shop online.
“Inflation is pressing consumers to start early and find the deals from retailers willing to offer the doorbuster promotions that will drive traffic and excitement in a challenging environment,” said Matt Kramer, KPMG National Consumer and Retail Sector Leader, in announcing the survey results. “Winning customers through great value and experience in tough times can go a long way to building long-term loyalty.”
