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Us Consumer 2018 Back To School Survey Findings
Us Consumer 2018 Back To School Survey Findings
• Total back-to-school spending is expected to reach ~$27.6B, or $510 per household, slightly up from $501 in 2017
• $5.5B is up for grabs. Shoppers remain undecided on where to spend 20% of their budget: online or in-store
• Households plan to spend an average of $292 in stores – representing $16B in total spending. This is more than
double that of the $115, or $6B in total spending, they say they’ll spend online for back-to-school
• B2S is experiencing plateauing digital influence, there is flattening usage of laptops, mobile, and social
• Children will likely influence over $21B in B2S spending during the back-to-school season
Customers have strong preferences about retail format; ranks have shifted in recent times
• Mass merchants remain the top location for intended visits and budgeted B2S spend
• Price-based retailers keep their high ranking positions among top shopping destinations after pushing down
traditional department and specialty clothing stores in 2017
• Despite less planned traffic to traditional retailers (e.g., department, home electronic, and office-supply stores)
parents expect to spend more at these retailers than they spend at price-based retailers
• Across categories, higher-income shoppers are more likely than lower-income shoppers to visit specialty stores
(e.g., department stores, home electronics, specialty apparel). Lower-income shoppers are more likely than
higher-income shoppers to visit price-based formats (e.g., mass market, dollar stores)
• Department stores are less popular with GenXers and Millennials, whereas off-price retailers are more popular
among the younger generations
• About two-thirds (62 percent) of parents plan to begin the B2S shopping before August; this group of early
shoppers spends on average about $100 more than shoppers that get a later start
• Approximately $18B will likely be spent in B2S shopping in the 4 week period between mid-July and mid-August
• More than two-thirds (68 percent) of shoppers plan to complete their shopping within a 1 month period of time;
however, the longer someone extends their B2S shopping, the more they will likely spend
Copyright © 2018 Deloitte Development LLC. All rights reserved. 2018 back-to-school survey 2
Survey findings
Back-to-school (B2S) shopping season accounts for about 50%
of annual school-related spend and touches one-quarter of U.S.
households
* Number of households with school going (K-12 grades) children in the US [Source: US Current Population Survey 2017]
** Number of children enrolled in K-12 grades in the US [Source: US Current Population Survey 2017]
# Percentage of child’s annual school related products that will likely be purchased during back-to-school shopping season [Source: Deloitte survey]
^ Deloitte calculations on back-to-school market spend ($27.6 billion) [Source: Deloitte survey and US Current Population Survey 2017]
Copyright © 2018 Deloitte Development LLC. All rights reserved. 2018 back-to-school survey 4
Back-to-school shopping spend expected to be dominated by
clothing category
School supplies
$6.0B
$3.7B
$15.1B est. market size
Electronic gadgets*
$2.8B
Source: Deloitte calculations on back-to-school market spend ($27.6 billion) [Source: Deloitte survey and US Current Population Survey 2017]
Note: Sample size (N) = 1,200
*Electronic gadgets include cell phones/smart phones, tablet/e-reader, and wearable devices
Copyright © 2018 Deloitte Development LLC. All rights reserved. 2018 back-to-school survey 5
Average B2S spend is up slightly at $510 in 2018 compared to
$501 in 2017
Northeast region has the highest B2S season average spend in 2018
$510 Northeast
21% $568
West Midwest
21% $493
24% $513
South
34% $488
“Please indicate your level of agreement with the following statements (% who agree or somewhat agree)”
Economic optimism
More confident about the U.S.
economy’s prospects now (June 2018),
24% 40% 44%
than you were at the end of 2017
Digital substitution
Buying fewer traditional school supplies
because my child is using more digital
28% 38% 44%
technologies
80%
70%
68%
58%
42%
30% 32%
20%
Clothing & accessories Electronic gadgets School supplies Computers & hardware
Child’s
$2.4B $12.7B $0.6B $2.2B $1.7B $4.2B $1.2B $2.5B
influence*
Online likely to pick up from undecided in Computers & HW, where in-store likely to pick up
from undecided in Electronic gadgets
2017 Category 2018
Clothing &
20% 63% 17% 19% 61% 20%
accessories
16 17 17 Catalogs 4%
12 18 18 Bookstores (On-campus) 3%
Question: “Which type of retailer(s) do you plan to visit for your B2S shopping?”
Source: Deloitte survey Upward movement in Downward movement in
Note: Sample size (N) = 1,200; multi-select question preference rankings preference rankings
Copyright © 2018 Deloitte Development LLC. All rights reserved. 2018 back-to-school survey 13
Some of the most preferred formats are likely to have lower
overall spend
Some of the less preferred formats are likely to have high overall spend
56%
16%
55% $1,200
14%
54%
$1,000
Shopper preference (%)
10% $800
8% 7% $600
7%
6% 6%
5% $400
4%
4%
2%
2% 2% 2% 2% $200
2%
0% $0
Mass Traditional Fast fashion Online-only Off-price Office Dollar Retailer Specialty Warehouse Home
merchant department apparel sites stores supply stores websites clothing clubs electronics
retailers
Shopper Preference (Retail format for most spend during B2S season) % Average Back-to-School Spend $
Approximately 90% of B2S shoppers are expected to be active during late July to early
August, a time which accounts for two-thirds of all B2S spend
67%
54%
34%
26%
10% 8%
Earlier than July Early in July Later in July Early in August Later in August September
(first 2 weeks) (last 2 weeks) (first 2 weeks) (last 2 weeks)
Question : “Out of $__ you plan to spend on back-to-school shopping, how much do you plan to spend during the following periods?”
Note: Sample size (N) = 1,200
Copyright © 2018 Deloitte Development LLC. All rights reserved. 2018 back-to-school survey 16
Parents who begin their B2S shopping before August are likely to
spend 20 percent more than late starters
Majority of shoppers start earlier than August
62% plan to begin shopping before August 38% plan to begin shopping in Aug or later
(Average spend = $544) (Average spend = $455)
33%
31%
19%
Early in August
10%
6%
Later in July
Later in August
Early in July
1%
Average B2S
$532 $553 $543 $473 $384 $284
Spend
Purchase from online retailers who offer free shipping 52% 63%
2017
Source: Deloitte survey responses
Note: Sample size (N) = 1,200
Copyright © 2018 Deloitte Development LLC. All rights reserved. 2018 back-to-school survey 21
Less than 1/4th of shoppers likely to use social media during B2S
shopping season
Most who plan to use social media will do so to find promotions, receive coupons,
and browse products
Technology adoption among B2S shoppers has shown smaller movement during the last
three years; customers may be waiting for the next innovation in usage and/or technology.
59%
57%
53%
51%
49%
49%
32%
23%
27%
Smartphone for shopping Desktop/Laptop for shopping Social media sites to assist in shopping*
Source: Deloitte survey
Note: Sample size for each year – 2016 (n = 1,194), 2017 (n = 1,200), 2018 (n = 1,200)
*Sample size (shoppers who use at least one digital device) in each year – 2016 (n = 951), 2017 (n = 978), 2018 (n = 985)
Copyright © 2018 Deloitte Development LLC. All rights reserved. 2018 back-to-school survey 23
Payments using credit and debit card are more preferred, though
preference between the two depends on income levels
Digital payment penetration remains low
“Which of the following payment methods will you likely use for your B2S purchases?”
Overall Generation
61%
60%
52%
51%
43%
Debit Card 57%
40%
40%
30%
5%
26%
4%
4%
3%
3%
3%
Credit Card 44% Baby Boomers GenXers Millennials
Household income
Cash/Check 37%
68%
68%
58%
53%
48%
Gift Card 4%
40%
29%
5%
5%
25%
20%
4%
4%
3%
2%
Digital
payment
4%
Less than $50,000 $50,000-$99,000 $100,000 and over
Electronic gadgets/
Rank Clothing & Accessories School Supplies
Computer & hardware
Office supply/
4 Off-price stores
technology stores
Online only sites
Question: “Which type of retailer will you shop the most for ______ during this back-to-school season?”
Source: Deloitte survey
Note: Sample size (includes only respondents who will purchase the above mentioned category); single-select question
Copyright © 2018 Deloitte Development LLC. All rights reserved. 2018 back-to-school survey 26
Mass merchants are likely to be the most preferred retail formats
across generations for Clothing & accessories
While traditional department stores are likely to find favor with older generations, off-price
stores are preferred by Millennials after mass merchants.
48%
43% Boomers
38%
GenXers
35%
Millennials
26% Overall
20%
16% 16% 15%
15% 14%
13% 14%
13%
11%
9%
5% 4% 4%
4% 3% 3% 3%
2%
Mass merchants Traditional Fast fashion Off-price stores Online only* Speciality
department clothing stores*
stores
High-income ($100k+)
Middle-income ($50k-$99k)
53%
Low-income (Less than $50k)
43%
39% Overall
31%
22%
20% 18%
16% 16% 16%14%
14% 13%13%
9% 10%
5% 5% 6%
3% 4% 3% 2% 3%
Mass merchants Traditional Fast fashion Off-price stores Online only* Speciality
department clothing stores*
stores
Question: (1) “Which type of retailer will you shop the most for clothing and accessories during this back-to-school season?”
Question: (2) “For the following categories, please indicate the total amount you estimate you will spend during back-to-school shopping season?”
Note: Sample size (includes only respondents who will shop the most for ‘Clothing & Accessories’ from the above mentioned retail formats)
Copyright © 2018 Deloitte Development LLC. All rights reserved. 2018 back-to-school survey 29
Dominance of mass merchants as the most preferred format for
technology products vary with income
When it comes to high-income shoppers, conventional stores – mass merchants and home
electronic stores – will likely have a tough competition from online only formats
Preferred retail formats for ‘Electronic gadgets/Computers & hardware’ – By income
High-income ($100k+)
29%
26%
25%
23% 23%
21% 20%
19%
17%
15%
9% 9%
7% 7%
5%
4% 3%
Office supply/technology
stores $383
Question: (1) “Which type of retailer will you shop the most for electronic gadgets/computers & hardware during this back-to-school season?”
Question: (2) “For the following categories, please indicate the total amount you estimate you will spend during back-to-school shopping season?”
Note: Sample size (includes only respondents who will shop the most for ‘electronic gadgets/computers & hardware’ from the above mentioned retail formats)
Copyright © 2018 Deloitte Development LLC. All rights reserved. 2018 back-to-school survey 31
Spend by higher income groups likely to be spread evenly across
mass merchants and home electronic stores
Low income households are likely to spend the most at home electronic stores, almost
double their likely spend at mass merchants
Average ‘Electronic gadgets/Computers & hardware’ spend ($) - By income
High-income ($100k+)
Middle-income ($50k-$99k)
Overall
$592
$572
$552
$430 $422
$383
$347 $363 $355
$334 $318
$311 $302
$185 $200
$105
Mass merchants Home electronic stores Online only* Office supply/ technology
stores*
High-income ($100k+)
17% 16%
12% 11%
9%
7% 7%
5% 4% 5%
3% 2% 4% 3% 2% 3%
Sample: The survey polled a sample of 1,200 parents of school-aged children, with respondents having at least
one child attending school in grades K to 12 this fall.
Methodology: The survey was conducted online using an independent research panel
Demographics
Region (N=1,200):
• West: (n=282)
• Midwest: (n=264)
• South: (n=424)
• Northeast: (n=230)
Copyright © 2018 Deloitte Development LLC. All rights reserved. 2018 back-to-school survey 34
About the survey
This annual Deloitte survey was conducted online using an
independent research panel between May 31 and June 6, 2018.
The survey polled a sample of 1,200 parents of school-aged
children and has a margin of error for the entire sample of plus
or minus three percentage points.
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Copyright © 2018 Deloitte Development LLC. All rights reserved. 2018 back-to-school survey 35