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Back-to-school shopping is off to an early start in 2024, with families and students already spending significantly on supplies, clothing and electronics despite lingering inflation concerns. According to a recent study spearheaded by the National Retail Federation (NRF) more than half of back-to-school and college shoppers started buying items for the upcoming school year in early July.
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Impact of Inflation and Consumer Spending
Last year, we saw high inflation having an impact on all sectors, including back-to-school. According to Forbes in “Inflation Hints At Easing And Back-To-School Looks Set To Boom,” more than half of parents report planning to spend an average of 21.8% more this year.
While prices for back-to-school items and goods seem to have decreased over the peak prices in 2023, overall inflation remains influenced by rising service, food and fuel costs. The article in Forbes says that despite economic uncertainties and consumer confidence being slightly down, parents—especially those with higher incomes—are not planning on cutting back significantly on spending for back-to-school.
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Retail Strategies for a Successful Season
While spending is predicted to be strong, inflation and cost-conscious shopping behaviors do linger. Marketsource has some tips for retailers this season to optimize their returns in the face of these ongoing concerns. One way is to accommodate price-sensitive and inflation-impacted shoppers who seek out discounts and store brands. We talked more about this in our article in Total Retail, “Price Pressures Persist: How Retailers and Brands Can Navigate Changing Shopping Behaviors.” Other tips for back-to-school retailers from Marketsource include prioritizing electronic gadgets as parents invest in tech for education and capitalizing on promotional events around back-to-school shopping.
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Importance of Consumer Research
To effectively navigate this back-to-school shopping season, conducting thorough consumer research is crucial. The right market research approaches can reveal insights into which product categories are most important to consumers this year, how they are responding to the ongoing inflationary pressures, and what they are looking for in terms of back-to-school sales and discounts. By staying attuned to consumer priorities and behaviors, companies can better align their strategies to drive sales during this pivotal shopping period. The season overall looks optimistic for retailers and brands during this back-to-school surge. Want to learn more about reaching customers during peak shopping periods? Reach out us!
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