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Retailers kick off back-to-school promotions
Research indicates a cautious consumer, predicts flat spending
Mark Hamstra
July 18, 2024
3 Min Read
Many retailers appear to be focused on value this year, which jibes with predictions that consumers will be cautious in their spending.Getty Images
With the Fourth of July holiday now in the rearview mirror, retailers are speeding into the next major spending season: back-to-school.
Many retailers appear to be focused on value this year, which jibes with predictions that consumers will be cautious in their spending. Research and consulting firm Deloitte, for example, said it expects that spending per student will be flat this year for K-12 students, at about $586 per student, down slightly from $597 per student in 2023.
The report noted, however, that while spending on technology is expected to fall by 11%, sales of school supplies will inch up slightly to an estimated $7.48 billion, vs. $7.38 billion last year. The survey found that 85% of parents said they would splurge on their children’s must-have back-to-school products, despite their financial concerns.
Mass merchants and online retailers will be the top destinations for back-to-school shoppers, cited by 77% and 65% of respondents, respectively, according to the Deloitte research. However, parents reported that they plan to shop across an average of 4.7 different retail formats as they seek out the best deals. That compares with 3.9 retail formats shopped in 2023, indicating that parents will sacrifice loyalty to stay within their budgets, Deloitte said in its report.
Many retailers appear to have value-seeking shoppers in mind as they have introduced their back-to-school promotions recently.
Target, for example, this year debuted a “20-for-$20” supplies list that includes pencils, glue, and other items that add up to less than $20. The retailer also launched a 20% discount for teachers and college students who are members of the Target Circle loyalty program. The discount ends Aug. 24 for teachers but has been extended through Sept. 28 for college students. The retailers also offered double-digit discounts on several back-to-school supplies and grocery products during its Target Circle Week promotion earlier this month.
Meijer, meanwhile, is leaning into technology that allows shoppers to download their individual school’s supply list directly into the cart on the Meijer app or website, a feature that Target also offers. In addition, Meijer launched six new Meijer brand school supply products, including markers, crayons, colored pencils, glue sticks, and glue, ranging in price from 25 cents to $1, with prices good through Labor Day.
The retailer said it is also continuing to offer teachers 15% off school and home office equipment through Sept. 7, marking the fourth consecutive year of this promotion.
Kroger has launched a variety of promotions and is also reminding college students to visit a Kroger pharmacy for their vaccinations and boosters.
"As students prepare to return to the classroom, it is critical that we emphasize the importance of back-to-school vaccines," said Meggen Brown, chief nursing officer, The Little Clinic LLC, which is a wholly owned subsidiary of Kroger.
More than half of shoppers — 55% — said they had already started shopping for back-to-school items by early July, according to the National Retail Federation’s annual back-to-school survey, conducted with Prosper Insights & Analytics. The NRF report also predicted a slight decline in consumer spending this year, at $38.9 billion, vs. $41.5 billion in 2023.
