US back-to-school spending to remain muted in 2024, Deloitte says
By Anuja Bharat Mistry and Ananya Mariam Rajesh
July 15 (Reuters) -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 WMT.N, Target TGT.N and China-founded Shein commenced back-to-school deals in the first week of July, earlier than usual, to get a jump on Amazon AMZN.O, 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% 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% 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%, while low-income families making less than $50,000 could slash their spending by 4% in 2024.
Meanwhile, higher-income families whose annual incomes exceed $100,000 are expected to see a 5% rise in average spending to $721 per child, compared with $689 a year ago, Deloitte noted in the report.
GRAPHIC
Expected category spend during back-to-school season 2024 https://reut.rs/4cUO7Es
Reporting by Anuja Bharat Mistry and Ananya Mariam Rajesh in Bengaluru; Editing by Shreya Biswas
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
