TRENTON, NJ – A sweeping trend nationwide is also expected to impact back to school shopping in New Jersey as consumers are cutting back due to inflation on school products.
According to a recent report by Deloitte, back-to-school spending is anticipated to decrease for the first time in nearly a decade. Shoppers, regardless of their income levels, are scaling back on non-essential purchases and prioritizing necessities amid persistent inflation.
The report revealed that consumers are projected to spend approximately 10% less this year, with the average expenditure per child decreasing to $597. Consequently, the overall back-to-school market is expected to shrink to $31.2 billion, compared to $34.4 billion in 2022.
Deloitte’s survey, which involved over 1,200 parents of school-aged children, highlighted the impact of inflation on consumer behavior. “Although parents were willing to endure higher prices last year for replenishing (back-to-school) items after the pandemic, 18 months of inflation have changed their tune,” stated Deloitte.
The report indicated that refreshing wardrobes and purchasing electronics for school have taken a back seat, with spending on apparel and technology projected to decrease by 14% and 13%, respectively. Instead, Americans are allocating their funds towards essential items.
On the other hand, school supplies are expected to see a significant increase in spending, with a projected jump of 20%, as per Deloitte’s findings.
A notable portion of surveyed households revealed a worsening financial situation compared to the previous year. Additionally, 51% of respondents expect the economy to weaken throughout the remainder of 2023.
Stephen Rogers, the executive director at Deloitte’s Consumer Industry Center, emphasized the trend of economizing during this back-to-school season. “Consumers are looking to save by shopping early, searching out deals, prioritizing spend to essential school supplies… they’re on the hunt for those bargains,” Rogers stated.
The survey also indicated that nearly 60% of all planned back-to-school purchases are expected to be completed by the end of July, an increase from 53% the previous year. Moreover, 69% of shoppers plan to rely on Amazon’s Prime Day sale.
Lupine Skelly, Deloitte’s retail research leader, noted a shift in consumer behavior compared to the record-breaking season of 2022. Skelly stated, “This year, people are like ‘what is the bare minimum I need to do to get my kids out the door on those first couple weeks of school?’ So (parents are) just purchasing the necessities to get that first couple weeks going.”