Discounts are Driving 2023 Back-to-School Shopping

The
retail back-to-school season is rolling out amidst inflation fears and
rising prices, making shoppers more discount-conscious. On the other
hand, as of June 2023, 25% of back-to-school shoppers had already
started on their back-to-school shopping list – up 17% from five years
ago, according to the National Retail Federation (NRF). Some researchers
have suggested this trend is motivated by parents eager to finally send
their kids to in-person schooling after experiencing a hiatus during
the pandemic. However, dollar-stretching seems to be the norm, and
bargain hunters abound.

The May 2023 JLL Back-to-School Shopping Report revealed that parents are expecting to expand their back-to-school budgets this year but are definitely seeking deals.

A high percentage of back-to-school shoppers are…

• Doing more comparative shopping online
• Shopping for sales more often
• Buying more store brands and generic products

Other interesting results from JLL’s survey:

• Walmart, Target, and Amazon are the top three retailers for back-to-school shoppers
• Parents opting for home delivery will increase 21% over 2020
• 1% of parents plan to visit two to three retailers

Back-to-School Sales Will Rise

Despite all the price-consciousness, the NRF predicts consumers will spend 12.5% more this year during the back-to-school shopping season. And of 1,212 parents surveyed by Deloitte
this past Spring, 57% said their kids could convince them to splurge on
clothing and accessories; 56% said the same about tech items.

So,
optimism may prevail. Furthermore, retailers have an opportunity—as
they do during most back-to-school seasons—to take advantage of the
additional in-store traffic

Matt Kramer, KPMG Consumer and Retail Sector Leader, has said, “Winning customers through great value and experience in tough times can go a long way to building long-term loyalty.”

Promote Brand Value to Everyone During Back-to-School Shopping 2023

Smart
retailers will take advantage of the heavier in-store traffic of
back-to-school shoppers to ensure all customers recognize value and are
engaging positively with brands. Here is some advice from a recent Retail TouchPoints article to make that happen:

Use Personalization Tools

While
back-to-school necessities are top of mind with parents and families,
realize that moms, dads, kids, and other family members may have their
sights on other shopping ideas, too. Developing a deeper understanding
of your customers through data analysis can help you personalize the
shopping experience for everyone in a household. It helps to know what
they haven’t bought yet…their intent to purchase… and their preferred
method to receive communications about discounts, deals, and specific
products.

Boost Customer Service and Convenience

Invest in
frictionless product presentation and buying solutions. Technologies
such as AR can help customers visualize what a person’s dorm room will
look like, how clothing fits them, and how electronics and large-ticket
items work. Even without such technologies, consider simple tools such
as AskMe®
that employ virtual brand experts who can give customers a deeper dive
into product features and benefits and share the information—on the
spot, without flagging down a retail associate.

Time Promotions to Coincide With School Start Times

For
instance, local elementary, middle, and high schools may start earlier
than colleges; and the first day of private schools may differ from
local public schools. AI- and machine learning-powered tools provide
data to assist in planning appropriate merchandise allocations that
coincide with peak buying times.