For brands banking on back-to-school, there’s cause for optimism.
Household spending on clothing, supplies, computers and electronics for children in grades kindergarten to 12 is expected to reach nearly $28 billion this year, up from $27 billion in 2017, according to Deloitte’s annual b-t-s survey.
Consumers are expected to spend $286 for b-t-s apparel, on average, versus $284 last year, and $112 on b-t-s supplies this year, versus $104 last year, according to Deloitte.
Parents said they’ll spend an average of $510 between July and September, including $292 at stores and $115 online. They’re undecided on how to spend the remaining 20 percent of their budgets, leaving $5.5 billion up for grabs among online and brick-and-mortar retailers, Deloitte said.
“The amount people plan to spend and tendency to shop in physical stores for back-to-school are consistent with last year, but retailers need to act fast for that $5.5 billion wild card,” said Rod Sides, vice chairman, Deloitte LLP, and U.S. retail, wholesale and distribution leader.
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The Deloitte survey was conducted online from May 31 to June 6 using an independent research panel polling 1,200 parents of children in grades kindergarten to 12. There’s a margin of error of plus or minus three percentage points.
According to Customer Growth Partners, Americans during the b-t-s season will ramp up their spending to a record $595 billion across all retail categories, excluding autos, gas, restaurants, food, beverage and home improvement. That represents a 4.3 increase from 2017.
“After a slow start due to the long winter, retail has inflected sharply up since late April and has hardly looked back,” said Craig Johnson, president of Consumer Growth Partners. “This is the most momentum we’ve seen in seven years and spans almost all retail sectors.” He characterized this year’s b-t-s season as “a key turning point not just for retailers but for overall consumer spending which drives 69 percent of the economy.”
CBG’s research is based on surveys by 18 researchers covering 100 benchmark mall and off-mall locations.
Deloitte indicated that the number-one shopping destination for b-t-s remains mass merchants, drawing 83 percent of survey respondents each spending on average $234 at mass. The figure jumps to $390 among those shopping at department stores and $338 among those shopping fast fashion retailers.
Deloitte said b-t-s shopping should peak in later this month into early August, and those who begin shopping before August are expected to spend 20 percent more than late starters. Parents participating in the Deloitte survey said their children influence $21 billion, or 75 percent, of their b-t-s dollars.