News • 17.07.2018

Back-to-school shoppers ready to fill their backpacks

Retailers can expect new lessons this year

Girl on way to school; Copyright: panthermedia.net/tan4ikk...
Source: panthermedia.net/tan4ikk

Household spending on clothing, supplies, computers and electronics for children in grades K- 12 is expected to reach nearly $28 billion this year, according to Deloitte's annual "Back-to-School" survey.

Parents surveyed say they'll spend an average of $510 between July and September, with most of that occurring in stores ($292) – more than double the amount they plan to spend online ($115), which accounts for nearly one-quarter (23 percent) of their spending.

Respondents remain undecided where they'll put the remaining 20 percent of their budget – leaving $5.5 billion up for grabs between online and store retailers. Additionally, the amount parents say their children influence accounts for $21 billion, or 75 percent of back-to-school dollars.

"The amount people plan to spend and tendency to shop in physical stores for back-to-school are consistent with last year, but retailers need to act fast for that $5.5 billion wild card," said Rod Sides, vice chairman, Deloitte LLP, and U.S. Retail, Wholesale and Distribution leader. "In just one year, previously undecided dollars have shifted dramatically by product category. For example, in 2017, 30 percent of people said they hadn't decided if they would purchase computers online or in-store and that number shrunk to 20 percent this year, most of it going online. In electronics, undecided spending dropped 10 percentage points, moving primarily into the stores."

The No.1 shopping destination remains mass merchants, drawing 83 percent of survey respondents. Other price-based retailers like dollar (38 percent), online-only (36 percent) and off-price stores (32 percent) follow, continuing to squeeze more traditional retailers out of the higher ranks. For example, off-price stores jumped from No.14 in 2016 to No.4 this year, while department stores fell from the No.2 position in 2016 to No.6 in the last two years of the survey.

While people plan to visit price-based retailers more frequently, those who shop at traditional retailers like department stores, home electronics and office supply stores make larger purchases at these locations compared with other venues like mass merchants.

"Back-to-school shopping tends to be price-focused as parents look for promotions and mass merchants for the best deals," added Sides. "But when we look below the surface, we notice several distinctions between high and low-income households and the way people shop for specific items like clothing, technology, and supplies. The potential lesson for retailers is that back-to-school may require them to do more than compete on price alone or try to sell across all categories. Survey results show it may be about delivering the best product or experience to customers in specific categories."

Parents' reliance on tools like laptops and social media may have hit a digital saturation point. Among respondents, 49 percent plan to use their desktop or laptop to shop, down from 57 percent last year. Mobile use increased to 53 percent after trailing desktop/laptop use in 2017. Parents' social media use also appears to be decreasing, with 23 percent saying they plan to use these tools to find promotions, receive coupons and browse products, down from 27 percent in 2017 and 32 percent in 2016.

"When we look deeper into these findings, customers seem to be waiting for the next wave of digital experience to attract and entertain them," added Sides. "That suggests that retailers' next assignment for back-to-school shoppers is to make the online and mobile interactions more exciting and meaningful."

Back-to-school shopping is expected to peak during late July and early August, and those who begin their shopping before August are expected to spend 20 percent more than late starters. Nearly 7 in 10 (68 percent) of shoppers tend to finish their back-to-school shopping within a four-week period, but those who extend their shopping timeframe (sometimes in search of deals) spend more overall.

Source: Deloitte

related articles:

popular articles:

Thumbnail-Photo: Internal communication via app at Modehaus Ramelow...
03.06.2019   #personnel management #app

Internal communication via app at Modehaus Ramelow

Mobile chat works as a bulletin board

What's new at Modehaus Ramelow? The fashion retailer’s employees can check PIA - and share information to their heart’s content. PIA is an app for "private information exchange".More and more internal communication ...

Thumbnail-Photo: APG Cash Drawer: new SMARTtill business development manager...
15.05.2019   #cash management #cash handling systeme

APG Cash Drawer: new SMARTtill business development manager

APG Cash Drawer announces hire of SMARTtill business development manager

APG Cash Drawer, a fast-growing global manufacturer of cash management solutions, announced today the addition of Tony Pusateri as SMARTtill Business Development Manager. ...

Thumbnail-Photo: U.S. merchants lack critical tools to fuel global expansion...
10.07.2019   #online trading #e-commerce

U.S. merchants lack critical tools to fuel global expansion

Top challenges: payment localization, compliance, and cybersecurity

Rapyd, a FinTech-as-a-Service provider, today announced the results of its inaugural ‘2019 State of Cross-Border eCommerce: U.S. Merchant Outlook’, which found that most U.S. business units (91 percent) prioritize cross-border sales as a ...

Thumbnail-Photo: Why digital signage pays off big!
03.06.2019   #digital signage #customer relationship management

Why digital signage pays off big!

The right content can increase sales and customer loyalty

The strategic use of digital signage can unquestionably lead to increased sales, a boosted impact of the sales floor, a new shopping experience, and a stronger brand image. However, emphasis is too often placed merely on technical innovations that ...

Thumbnail-Photo: Tackling organized retail crime with video analytics...
26.06.2019   #video surveillance #digital video surveillance

Tackling organized retail crime with video analytics

Inpixon joins forces with National Anti-Organized Retail Crime Association

Inpixon, an indoor positioning and data analytics company, announced it is collaborating with the National Anti-Organized Retail Crime Association (NAORCA Worldwide) to combat retail crime by providing a free 90-day trial offer for IPA Video™ ...

Thumbnail-Photo: Goodbye paper receipts: All documents stored in one app...
16.05.2019   #epos systems #cashpoints

Goodbye paper receipts: All documents stored in one app

What happens when the Receipt Provision Ordinance takes effect? We digitize!

They create a lot of work and endless waste: tons of paper receipts from cash registers end up with customers or the waste bin every day. In early 2020, all consumers must be given a purchase receipt in Germany. That’s what the law mandates. ...

Thumbnail-Photo: Changing markets: embracing disruption to harvest opportunity...
18.06.2019   #digitization #event

Changing markets: embracing disruption to harvest opportunity

Reporting from the first annual Retail & Brand Experience World Congress in Barcelona

More than 200 industry insiders highlighted the many challenges facing the retail sector today in interesting talks and lectures.Topics included the customer experience, the use of technologies, digital media, omnichannel strategies, personalization ...

Thumbnail-Photo: Digital Signage Summit (DSS) Europe
07.05.2019   #digital signage #digitization

Digital Signage Summit (DSS) Europe

iXtenso readers receive a 30% ticket-discount!

The two-day event comprises a comprehensive mix of twin-track conference programme; hands-on workshops; exclusive presentations; numerous networking opportunities and a vendor and service supplier exhibition area.In 2019, DSS Europe returns to the ...

Thumbnail-Photo: 45th anniversary of the barcode in retail
01.07.2019   #barcode scanner #qr code

45th anniversary of the barcode in retail

GS1 US celebrates the barcode’s relevance as the backbone of commerce

GS1 US®, the information standards organization best known as the administrator of UPC barcodes, this week celebrates 45 years since the debut and first scan of the iconic barcode. On June 26, 1974, a pack of Wrigley's chewing gum carrying a ...

Thumbnail-Photo: E-commerce: AI-powered translations revitalize business...
29.04.2019   #online trading #e-commerce

E-commerce: AI-powered translations revitalize business

Interview with Boris Zielonka, Director Marketing & Sales, Eurotext AG

Retailers who set up an online store can expand their business – especially if they create a multilingual content strategy.As a language and translation service, Eurotext AG supports retailers in this endeavor. From this conversation with ...

Supplier

LANCOM Systems GmbH
LANCOM Systems GmbH
Adenauerstraße 20 / B2
52146 Würselen
ROQQIO Commerce Solutions GmbH
ROQQIO Commerce Solutions GmbH
Harburger Schloßstraße 28
21079 Hamburg
APG Cash Drawer
APG Cash Drawer
4 The Drove
BN9 0LA Newhaven
Delfi Technologies GmbH
Delfi Technologies GmbH
Landgraben 75
24232 Schönkirchen