Dive Brief:
- Back-to-school spending among U.S. consumers is expected to rise 3.3% year over year to $33.3 billion, a new Coresight Research report estimates. More than two-thirds (68.8%) of respondents to Coresight’s survey said inflation will limit their spending on back-to-school items this year.
- Nearly three-fourths (73%) of back-to-school shoppers anticipate price increases due to supply chain issues or tariffs on goods imported to the U.S., the survey found. Almost 65% expect product shortages for the same reason.
- In both dollar and unit terms, over 90% of shoppers plan to spend the same or more during this back-to-school season than they did last year. On average, families expect to spend $378 per child on back-to-school purchases, up 21.5% from $311 in 2024, the report said.
Dive Insight:
With tariffs and global supply chain issues clouding the back-to-school shopping season, shoppers are adjusting their shopping strategies, Coresight found in its survey. Among the moves shoppers are making to circumvent price hikes are seeking bulk discounts and promotions (41%), shopping earlier (37.4%) and switching to affordable or private-label brands (30%).
To cope with limited product availability, shoppers plan to buy from different retailers or channels (35.2%), shop earlier (34.8%) and buy fewer items (27.8%).
Other reports suggest that shoppers are changing their shopping habits in anticipation of potential price increases. A PwC survey released last month noted that one in five shoppers planned to use artificial intelligence tools to find deals online. PwC survey respondents also said they would cut back their spending on technology (44%), clothing (40%), supplies (30%), and books and other educational materials (26%).
Echoing Coresight’s findings, other surveys indicate that consumers are starting their back-to-school shopping trips earlier than they had in the past. A TeacherLists survey released last month found that a fifth of consumers began their back-to-school shopping in June, up from 11% the year prior.
As consumers seek back-to-school items well before the school year begins, major retailers have launched summer sales with discounts on school supplies, among other items. After Amazon announced its four-day Prime Day sale, taking place this month, Walmart and Target each debuted their own competing sales. In a similar move, Dollar General marked down more than 1,000 items through Labor Day, and is offering back-to-school discounts, including 30% off digital coupons for teachers.
