Why Adaptability is Crucial for Brands to Maximize Back-to-School Shopping Season

The back-to-school shopping season is one of the most lucrative opportunities for retailers annually. Even in tighter economic conditions, with planning and flexibility, savvy businesses can see solid returns.

According to the National Retail Federation’s Chief Economist Jack Kleinhenz, this year’s back-to-school shopping season should see record sales numbers. While challenging economic indicators like inflation still affect many shoppers, the fact of the matter is that many consumers see these purchases as essential rather than discretionary. As a result, families are expected to budget nearly $875 for a K-12 child, and over $1,300 for college students. This spending is spread across a number of categories, with clothing, school supplies, and electronics seeing the most.

This shopping season isn’t quite what it used to be, however. Back-to-school shoppers used to focus their spending closer to the start of the school year. With July now representing a gold rush for brands inventing their own retail holidays — Amazon Prime Day, Target’s Circle Week, Best Buy’s Black Friday in July, and many more — there's more competition than ever, and the shopping season is now beginning much earlier than ever before.

Despite the early start, retailers can still cash in on this lucrative shopping season by understanding consumer habits and demonstrating adaptability to successful strategies.

Promotions and Discounts Can Entice Budget-Conscious Shoppers

Even though the NRF estimates that back-to-school spending is expected to eclipse $39 billion this year, that doesn’t change the fact that many consumers are feeling the effects of inflation. As a result, shoppers are increasingly more price-conscious and deal-seeking.

For retailers, focusing on promotions can appeal to more budget-minded consumers. By understanding which product categories are most likely to see spikes during the season, retailers can maximize the effectiveness of their promotional strategy. Offers like buy one, get one; free shipping; free gifts with a purchase threshold; and more can be particularly effective.

Many retailers are also offering pre-made back-to-school kits that feature many common items on school shopping lists, such as pencils, pens, pencil sharpeners, markers, highlighters and pencil cases. Bundle deals can help increase cart sizes for customers who may originally have been in the market for a handful of disparate products or who may not be sure of every single essential needed.

Be Adaptable to Successful Strategies

The most important part of discounting and promotions, however, is using them as a starting point. With an extended back-to-school shopping season, retailers have weeks to refine their promotional strategy. Beginning with multiple promotional offers or bundling options, retailers can test, remove or adapt these strategies based on past offers that were proven successful.

This flexibility comes from a deep understanding of inventory management. Retailers with a firm grasp on their supply chain can adjust promotional strategies accordingly based on which products need to move and which products show consistent sales. The important thing to remember is that promotions aren’t set in stone. Therefore, making the most of the back-to-school season means displaying agility to capitalize on what works.

Sell Less

This may seem counterintuitive, but one effective strategy for brands this year is selling less. Parents are sent the messaging that everything needs to be bought new each school year, which leads to a race to the bottom — those retailers selling greater volumes of low-cost, disposable products.

If brands focus on selling fewer, higher-quality items, it can not only create a more distinguished shopping experience while also enabling parents to forge a more lasting connection to a product. This strategy gives retailers the opportunity to message around sustainability, which can be a major motivator for parents in a crowded back-to-school market. Brands like Staples are offering discounts to parents who bring in old backpacks and school supplies for recycling, while Target has launched a denim trade-in program for discounts as well.

Of course, certain product categories — like clothing, where kids grow out of them every year — can be tough sells to get parents to spend more on fewer items. However, bigger-ticket products like backpacks, electronics, and longer-lasting school supplies can be promoted as investment pieces to drive sales.

Understand the Shopping Habits of Millennial Parents

As millennials become the majority of parents with school-aged children, retailers will need to meet them where they are in their shopping preferences. While in-store will always be important, millennials are a mobile-first buying cohort, shopping online at store websites, third-party sellers, and social media.

Retailers need to provide a seamless shopping experience across all platforms by providing accurate product information and pricing, as well as rich graphics and multimedia to appeal to these more tech-savvy parents.

Don’t Assume the Season is Over When the Opening Bell Rings

While it’s true that shoppers are starting earlier, that doesn’t mean school shopping ends on the first day of school. Be prepared to accommodate last-minute and supplemental shoppers. Running additional promotions well into the first few weeks of the school year can help a retailer stand out and appeal to late shoppers.

The back-to-school shopping season is an exciting time for retailers. By understanding what tactics are working, and tailoring the shopping experience to meet customers where they are, these successes can set the tone and carry through to the holidays.

Kristin Naragon is the chief strategy and marketing officer at Akeneo, the product experience company.