US Back to School Shopping: K-12 Market Report 2023

Overview

• What you need to know
• This Report looks at the following areas
• Definition
• Market context

Executive Summary

• Top takeaways
• Market overview
  • Figure 1: Total and per household planned back to school (K-12) spending, at current prices and in current dollars, 2017-22
• • Figure 2: Back to school shopping K-12 outlook, 2023-27
• Opportunities and challenges
• Economic pressures will drive a focus on value and deal-seeking
• Omnichannel shopping options add convenience for busy parents
• Kids drive back to school purchases
• Key consumer insights

Market Size

• Parents prioritize back to school shopping amid inflation
  • Figure 3: Consumers’ planned back to school (K-12) spending, in current dollars, 2017-27
• Average household spending is on the rise
  • Figure 4: Total and per household planned back to school (K-12) spending, at current prices and in current dollars, 2017-22
• • Figure 5: Per household planned back to school (K-12) spending, in current dollars, 2017-22

Segment Performance

• Electronics and clothing comprise nearly two thirds of school spending
  • Figure 6: Distribution of consumers’ planned back to school spending (K-12), by category, 2017-22
• Continued growth for electronics as K-12 learning embraces technology
  • Figure 7: Consumers’ planned back to school spending (K-12) – Electronics, 2007-22

Market Factors

• Back to school season weathers economic uncertainty
  • Figure 8: Consumer Price Index change from previous period, 2021-22
  • Figure 9: Consumer Sentiment Index, 2007-22
• • Figure 10: Impact of inflation on household behaviors, by parental status, 2023
• American household dynamics are changing
• Number of households with children continues to decline
  • Figure 11: Households, by presence and ages of own children, 2021
• US households are becoming more diverse
  • Figure 12: Households with related children under 18 in the household, by race and Hispanic origin of householder, 2021
• Most parents of K-12 students are Millennials
  • Figure 13: Parents of children under 18, by generation, 2022
• Tech advancements lead parents to leverage digital tools for shopping
• Sustainability is a priority for parents
• Safety concerns are growing in schools
  • Figure 14: FabKids supports Moms Demand Action

Competitive Strategies and Market Opportunities

• Competitive strategies
• Amazon softens the blow of rising prices with a sense of humor
  • Figure 15: Amazon takes a comedic approach to lighten the mood about inflation
• L.L. Bean highlights durability based on a real-life customer experience
  • Figure 16: L.L. Bean “Dear L.L. Bean” 2022 back to school ad campaign
• Gap Kids celebrates kids with authenticity and belonging
  • Figure 17: GAP Kids “Everyone Belongs” 2022 back to school ad campaign
• Market opportunities
• Enable pricing innovation to deliver value and savings
  • Figure 18: Old Navy “Price ON-Lock” helps parents save on back to school apparel
• Omnichannel approach will enable flexibility and convenience
• Look toward the metaverse to safely connect with kids and teens
  • Figure 19: Dick’s Sporting Goods launches “School of Sport” experience on Roblox
• Reinvent the school shopping calendar

The Back to School K-12 Consumer – Fast Facts

Shopping Participation

• Parents continue to shop back to school, despite higher prices
  • Figure 20: Back to school shopping participation, 2022-23 school year, 2022
• • Figure 21: Back to school shopping approach, 2022-23 school year, 2022
• What to expect in the 2023-24 school year and beyond
• Millennials make up the vast majority of K-12 parents
  • Figure 22: Back to school shopping participation, 2022-23 school year, by generation of parent, 2022
• Educational milestones are an opportunity for engagement
  • Figure 23: Upcoming educational “milestones” in the 2023-24 school year, 2022

Shopping Timeframe

• Parents are prepared and shop early for back to school
  • Figure 24: Back to school shopping timeframe, 2022
• School lists, inventory and sales events drive shopping time frames
  • Figure 25: Behaviors and attitudes toward back to school shopping timeframe, 2022
• • Figure 26: Amazon’s Prime Day linked to back to school purchases
• Parents with financial struggles need support
  • Figure 27: Back to school shopping timeframe, by household financial situation, 2022
• • Figure 28: Behaviors and attitudes toward back to school shopping timeframe, by household financial situation, 2022

Retailers Shopped and Shopping Method

• Mass merchandisers own back to school season
  • Figure 29: Retailers shopped, 2022
  • Figure 30: Retailers shopped, compared to previous years – Mass merchandisers and Amazon, 2019-22
• Dollar stores, specialty apparel and office supplies stores gained ground in 2022
  • Figure 31: Dollar General promotes back to school savings
  • Figure 32: Select retailers shopped, compared to previous years, 2019
• Department stores and electronics stores declined
  • Figure 33: Macy’s targets younger demographic with Claire’s partnership
  • Figure 34: Amazon promotes its “Buy with Prime” feature
• Multicultural consumers lean on value and discount retailers
  • Figure 35: Select retailers shopped, by race and Hispanic origin, 2022
• • Figure 36: Justice x Walmart launches “Powered by Girls” campaign
• In-store rebounds as preferred shopping method, but mobile is on the rise
  • Figure 37: Shopping method and devises used for online shopping, 2022

Items Purchased and Planned Purchases

• Apparel and school supplies top school shopping lists
  • Figure 38: Items purchased for the 2022-23 school year and planned purchases for the 2023-24 school year, 2022
• Electronics purchases skew higher income, older children
  • Figure 39: Electronics purchases for the 2022-23 school year and planned purchases for the 2023-24 school year, 2022
  • Figure 40: Texas Instruments gives calculators a personality
• • Figure 41: Best Buy plans to have opened 100 Teen Tech Centers by 2025
• Multicultural families invest in their children’s school year
  • Figure 42: Select planned purchases for the 2023-24 school year, by race and Hispanic origin, 2022
• • Figure 43: EPIC Everyday offers inclusive designs for kids

Impact of Inflation on Back to School Shopping

• Deal-seeking behaviors dominate amid higher prices
  • Figure 44: Impact of inflation on back to school shopping, 2022
• • Figure 45: Rakuten promotes cashback on back to school purchases
• Financial struggles lead parents to make difficult choices
  • Figure 46: Impact of inflation on back to school shopping, by household financial situation, 2022
• BNPL is a largely untapped opportunity for back to school season
  • Figure 47: Impact of inflation on back to school shopping – Usage of BNPL, by key demographics, 2022

Shopping Influences

• Kids have strongest influence, but promotions rise in importance
  • Figure 48: Back to school shopping influences, 2022
• • Figure 49: Select back to school shopping influences, year-over-year comparison, 2019-22
• Gen Z, Millennial parents more driven by media
  • Figure 50: Select back to school shopping influences, by generation of parent, 2022
• • Figure 51: Influencers share back to school shopping tips on TikTok
• Promotions are critical for lower-income and struggling households
  • Figure 52: Back to school shopping influences – Promotions and coupons, by household income and financial situation, 2022

Behaviors and Attitudes toward Back to School Shopping

• Parents employ a range of approaches to get the job done
  • Figure 53: Behaviors and attitudes toward back to school shopping – Shopping approach, 2022
• Convenience still matters
  • Figure 54: Select behaviors and attitudes toward shopping approach, by gender of parent, 2022
• Opportunity to reinvent the school shopping calendar
• Back to school shopping can be an emotional experience
  • Figure 55: Behaviors and attitudes toward back to school shopping – Shopping experience, 2022
• • Figure 56: Hollister adds “Share2Pay” option to enable safe teen shopping
• Retailers and brands can help families manage back to school stress
  • Figure 57: Happy Nation brings positive vibes to back to school season
• Younger parents look for a new approach to improve the experience
  • Figure 58: Select behaviors and attitudes toward back to school shopping, by generation of parent, 2022
• • Figure 59: Kidpik highlights the convenience of subscription-based shopping, 2022
• Sustainable shopping options will continue to rise in importance
  • Figure 60: Attitudes toward sustainable shopping options, by key demographics, 2022
• • Figure 61: GoodBuy allows parents to find sustainable and conscious alternatives, 2022
• Financial pressures add to an already stressful process
  • Figure 62: Attitudes toward back to school shopping stress, by household financial position, 2022

Appendix – Data Sources and Abbreviations

• Data sources
• Sales data
• Consumer survey data
• Consumer qualitative research
• Abbreviations and terms
• Abbreviations

Appendix – The Market

• • Figure 63: Consumers’ planned back to school (K-12) spending, in inflation-adjusted dollars, 2017-22

Appendix – The Consumer

• • Figure 64: Shopping approach, by school age of child shopped for, 2022