Deloitte’s 2024 back-to-school survey gives retailers a useful tool for gauging consumer expectations

By Jonathan Rothman, Audit & Assurance Partner, Deloitte & Touche LLP

Talking points

• Deloitte’s new back-to-school (BTS) retail survey provides fresh insights on consumer plans and shopping trends.
• BTS spending plans remain flat reflecting the uncertainty of current economic conditions.
• Value, convenience, and the importance of data also factor prominently in the findings.

The back-to-school shopping rush has proven to be a critical stretch on the retail calendar, second in importance only to the holiday shopping season. Our recently released 17th annual 2024 Deloitte back-to-school survey, one of my favorite thought pieces of the year, captures the latest back-to-school retail trends and consumer sentiments. It provides insights on fundamental questions retailers typically have about BTS shopping patterns.

What behaviors should retailers pay attention to as the BTS season kicks off? How much are shoppers planning to spend this summer? And what factors would cause a family to splurge on their purchases? The survey provides insights on these and other topics.
 

Survey highlights

Here are a few highlights from the survey: 

• Parents weigh prices and priorities: As families continue to navigate a cost-of-living squeeze, many are having to make tough decisions on where their discretionary dollars go. Many respondents are focused on rebuilding their savings and investing in kids’ extracurricular activities. That means they’re taking a cautious approach to BTS spending.
• Value eclipses loyalty: Many consumers are prioritizing value over loyalty by shopping earlier to find the best deals, with 66% of the budget expected to be spent by the end of July versus 59% in 2023. They’re also shifting to private label (50%) and shopping at more retail formats to find the best deals.
  
• Splurging is still possible: Well over three-quarters of respondents could be influenced to splurge on a must-have item or brand for their children. In addition, 50% said they plan to purchase something for themselves, offering retailers opportunities to secure add-on sales.
  
  

Spending trends  

Parents plan to spend $586 per child this BTS season—down just $11 from 2023. The overall BTS market spend holds relatively steady at $31.3 billion, versus $31.9 billion in 2023. Clothing and school supplies are flat year over year (YoY), while tech takes a backseat (-11% YoY).

Low-income and middle-income parents plan to reduce BTS spending (-4% and -9% respectively) as many struggle with finances. High-income parents expect to spend more (+5% YoY) as prices for BTS items rise.
 

Despite the buttoned-down spending pattern, 85% said they would splurge on their child’s must-have BTS product, to make the start of school exciting or help boost their child’s self-esteem.
 

Evolving consumer preferences

Convenience joins value as a top BTS consumer preference. On the technology front, Generative AI (GenAI) technology factors heavily into this year’s survey. Here are a few consumer preference takeaways from the survey: 

• When deciding where to spend the most, 70% of respondents are looking for retailers in convenient locations offering convenient delivery options and hassle-free returns.
• Mass merchants (77%) and online retailers (65%) are top destinations for those surveyed, because of superior prices and convenience.
• 18% of respondents plan to use GenAI for BTS shopping, with GenAI helping to enhance the shopping experience by providing product reviews, helping to economize, and saving time. 
• 43% of consumers buy pre-owned products when available, up from 40% in 2023.
   

Conclusions

Leveraging data for strategic decisions: These survey results provide a useful overview for retailers. However, the ability to drill down into data specific to your own consumers is critical. With more than $30 billion in potential sales at stake during key shopping seasons, accurate financial reporting and data analytics are essential tools to optimize promotions and inventory management. Audit and assurance professionals should verify that the data driving retail business strategies and decisions is accurate and reliable. 

Cultivating trust through consistent experiences: Deloitte advises retailers to lean in on loyalty programs and consistent in-store and online experiences to build trust. Audit and assurance services can verify that the systems supporting these programs are robust and that reported outcomes are transparent, fostering confidence among consumers and investors alike.

Balancing profitability and consumer expectations: In today’s fast-paced retail environment, businesses must operate profitably while balancing values that matter to their stakeholders, such as sustainability, inclusion, trust, and innovation. The audit and assurance business plays a vital role by validating financial statements and internal controls.
 

What role can Deloitte play?

Deloitte’s Retail Industry practice understands the challenges and opportunities retail businesses face. We have a long history of advising retailers on how to make their programs, systems, and controls more robust, trustworthy, and sustainable—while also improving the accuracy and reliability of their data. Don’t hesitate to contact me with questions or for more information. You can also download our complete back-to-school survey here.  

This publication contains general information only and Deloitte is not, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional adviser. Deloitte shall not be responsible for any loss sustained by any person who relies on this publication.