Back to School Sales Are Expected to Surge in 2022
According to financial services firm Deloitte, back-to-school is typically the second-largest spending event for parents each year, behind the Christmas shopping season. However, as a result of supply-chain disruptions caused by the COVID-19 pandemic, commodity circulation was impacted and contributed to a surge in commodity prices, leading to a significant drop in back-to-school sales. Despite economic and inflationary pressures, parents are still determined to ensure their children have the necessary school supplies to succeed next year. As a result, back-to-school spending is expected to reach new heights in 2022.
Data compiled by CouponBirds shows that consumers in the United States are expected to spend over 11 billion U.S. dollars on clothing and accessories during the 2022 back-to-school shopping season. Furthermore, total spending on electronic gadgets, computers, and hardware goods is estimated to reach about 12.5 billion U.S. dollars that year, and total spending on shoes is predicted to be 7.2 billion. Additionally, school supplies expenditure is expected to hit 6 billion.
According to NRF's data, total back-to-school spending is expected to remain higher than in the previous two years of the pandemic. The total expenditure in 2019 was $26.20 billion, increasing to $33.90 billion in 2020, and $37.10 billion in 2021. The NRF predicts the number will be about $37 billion in 2022. Families with children in elementary through high school plan to spend an average of $848.90 on school items, which is $59 more than last year. College students and their families plan to spend an average of $1,200.32 on college or university items, an increase of $141 from last year. Over half of this increase ($80) is due to increased spending on electronics and dorm furnishings. Total back−to−college spending is expected to reach a record $71 billion, up from $67.7 billion in 2020.
Deloitte conducted a back-to-school survey, which revealed that about 37% of parents plan to spend $34.4 billion for K-12 students, or approximately 661 per student. However, 57% of back-to-school shoppers surveyed are concerned about inflation, even though many remain determined to purchase needed supplies, possibly driving spending per student up by as much as 8%. Those shoppers surveyed plan to decrease their spending on technology products by 8% year-over-year.
Due to the uncertain social landscape of the past several years, many K-12 parents are focused on their child's overall mental wellness. As a result, 36% have purchased products or services in the past year to address this issue. Despite stockout and inflationary concerns, the back-to-school shopping season is returning to a more typical timeframe with 53% of K-12 spending expected to occur by the end of July.
The back-to-college shoppers are expected to spend $28.3 billion or approximately $1,600 per student, which is an increase of 10% from last year. These shoppers are also expected to increase their spending on technology by 22%, in contrast to K-12 shoppers who plan to decrease their spending on technology products.
47% of surveyed back-to-college shoppers also choose sustainable products when possible and report spending 19% more than the average back-to-college shopper. The survey also found that many college families are equally concerned about their student's mental wellness and are seeking solutions. 36% of those surveyed will spend on products or services to address their students' mental health.
Consumer preferences for shopping platforms have changed over the past year. The online share of back-to-school spending for K-12 parents decreased to 35% in 2022 from 39% in 2021. Furthermore, only 35% of parents surveyed plan to leverage social platforms for their shopping this year, compared to 41% in 2021.
On the other hand, college families' in-store share of back-to-college shopping is expected to increase for respondents to 44% in 2022 from 39% in 2021. In-store shopping is also expected to see a resurgence according to survey respondents. It accounts for 49% of overall back-to-school spending, up from 43% in 2021.
Despite financial concerns, seasonal spending is expected to reach an all-time high. Retailers must take advantage of this precious opportunity.
