Connect with us

World

Back-to-school spending in US to remain muted in 2024, says Deloitte

Published

4 months ago

on

Back-to-school spending in US to remain muted in 2024, says Deloitte

Retailers and consumer products companies can expect to see a continued volume pressure right in the back-to-school quarter. (Photo: pexels)

2 min read Last Updated : Jul 15 2024 | 11:04 AM IST


Back-to-school spending this year is expected to be flat or lower in the United States, as shoppers dial down on expensive electronics such as laptops and personal computers, Deloitte said.

 


Shoppers are likely to spend $31.30 billion, or about $586 per student, in kindergarten to 12th grade, Deloitte said, citing its shopper surveys. That compares to $31.90 billion, or $597 per head, for 2023, it said.

 


Why it’s important


Parents typically look for large discounts on sneakers, computers, clothing and backpacks ahead of the new school year.


Walmart, Target and China-founded Shein commenced back-to-school deals in the first week of July, earlier than usual, to get a jump on Amazon, which will hold a two-day Prime Day event on July 16 and 17.


Key quote


Middle-income families are focusing more on value and willing to shop for private label, said Stephen Rogers, managing director, Deloitte Insights Consumer Industry Center.

 


“As the summer sales events have become almost the unofficial start of back to school shopping, retailers need to have those promotional offers … queued up right, ready to go,” Rogers said.

 


Retailers and consumer products companies can expect to see a continued volume pressure right in the back-to-school quarter, he added.

 


By the numbers


About 67 per cent of parents surveyed may sacrifice loyalty if the preferred brand is too expensive, Deloitte said. The survey polled a sample of 1,198 American parents of school-aged children.

 


Shoppers are likely to spend $12.60 billion on clothing and school supplies, roughly on a par with what they spent in 2023, and $8.6 billion on technology products, down 11 per cent from a year earlier.

 


Middle-income families making between $50,000 and $99,000 in a year are expected to cut their spending by 9 per cent, while low-income families making less than $50,000 could slash their spending by 4 per cent in 2024.

 


Meanwhile, higher-income families whose annual incomes exceed $100,000 are expected to see a 5 per cent rise in average spending to $721 per child, compared with $689 a year ago, Deloitte noted in the report.


(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Jul 15 2024 | 11:03 AM IST

Related Topics:
Continue Reading