NRF: Back-to-School Spending Expected to Reach $38.8B
As of early July, more than half (55 percent) of back-to-school and college shoppers had already begun buying items for the upcoming school year, according to the annual survey released today by the National Retail Federation (NRF) and Prosper Insights & Analytics. Total back-to-school spending is expected to reach $38.8 billion, the second-highest figure on record, after last year’s high of $41.5 billion. Since 2003, the NRF has conducted a comprehensive survey on back-to-class shopping trends. This year’s research included 7,533 consumers and was fielded July 1-8.
Total back-to-college spending is expected to reach $86.6 billion, the second-highest figure in the history of the survey after last year's forecast $94 billion.
Total Retail's Take: As we've seen during most shopping holidays over the past few years, consumers are starting to shop earlier and earlier. “Families and students are eager to get a jumpstart on their shopping for the start of the school year," said NRF Vice President of Industry and Consumer Insights Katherine Cullen in a press release. "Retailers have anticipated this early demand and are well-positioned to offer a variety of products at competitive prices.”
The survey shows consumers' continued focus on deals and discounts. Amidst rising costs, inflation and necessary purchases, parents are actively looking to cut costs and save on spending. Eighty-five percent of back-to-class shoppers planned to take advantage of Prime Day and other retailer sales in July to buy classroom staples and other school necessities. Similar to past years, the most popular destinations for back-to-school shopping are online (57 percent), department stores (50 percent), discount stores (47 percent), clothing stores (42 percent) and electronics stores (23 percent).
If retailers are a bit late to the back-to-school promotions game, there's still time to capture parents' attention. The majority (86 percent) of consumers still have at least half of their purchases left to complete. The top reasons consumers still have shopping to do are because they're waiting for the best deals (45 percent) or they don’t know what's needed yet (45 percent). Retailers will want to ramp up efforts to capture shoppers in the last few weeks before school starts.
Kristina Stidham is the digital content director at Total Retail and sister brands Women in Retail Leadership Circle and Women Leading Travel & Hospitality at NAPCO Media. She is passionate about digital media and handles video, podcast and virtual event production for all brands. You can often find her at WIRLC, TR, WLT&H or industry events with her camera and podcasting equipment—or at home on Zoom—recording interviews with thought leaders and business executives.
Kristina holds a B.A. in Media Studies and Production from the Temple University Klein College of Media and Communication in Philadelphia. Go Owls! When she's not in the office, she loves to go on long walks, sing around the house, hangout with her family and two pet guinea pigs, and travel to new places.
