US clothing spend for back-to-school drops by 14% YoY

The overall back-to-school market for the US is predicted to drop to $31.2 billion with clothing expenditure down 14 per cent year-over-year (YoY). Back-to-school spending for K-12 students is anticipated to decrease by 10 per cent to $597 per student.Shoppers are likely to favour retailers offering competitive pricing, with 80 per cent choosing mass merchants, 60 per cent online retailers, and 33 per cent each for off-price retailers and dollar stores. Interestingly, cash is the preferred method of payment for back-to-school purchases, likely a response to higher interest rates, according to the 2023 Deloitte Back-to-School Survey.

US back-to-school spending for K-12 students is expected to drop 10 per cent to $597 per student due to inflation.
Six in 10 parents are ready to spend more on quality items.
Retailers offering competitive prices are favoured, with many planning to shop in-store; despite financial constraints, splurging for quality is a trend, particularly in clothing.

Financial concerns, largely fuelled by 18 months of inflation and a 23.7 per cent increase in the cost of school supplies in two years, are shaping families’ decisions. This has resulted in parents across income groups prioritising spending and finding ways to economise throughout the season. Despite these challenges, six in 10 parents are ready to spend more on better quality products for their children, presenting retailers with opportunities in the upcoming shopping season.

Parents appear to be strategically planning their shopping, with 59 per cent expected to complete it by the end of July, up from 53 per cent in 2022. Many believe better deals are available earlier in the season. In terms of shopping venues, 74 per cent plan to shop in-store versus 56 per cent online. Undecided shoppers represent a $6.3 billion opportunity for retailers.

Environmental concerns seem to have taken a back seat, with only 35 per cent planning to buy sustainable back-to-school products, down from 50 per cent in 2022. However, those who do opt for sustainable products tend to spend 36 per cent more. Despite budget constraints, parents are willing to splurge for quality, with 57 per cent saying their child could persuade them to spend more on clothing.

Fibre2Fashion News Desk (NB)