Back to school doesn’t mean back to tech upgrades. As inflation rises without wage growth matching it, and consumer confidence worsens, parents are going online more to find deals, even if they aren’t necessarily buying new tech products, according to Deloitte’s 19th Back-to-School survey.
For the fourth straight year, back-to-school shoppers will spend less per child — $557 — as inflation continues to rise, and 57% of parents believe the economy will get worse in the second half of the year. That’s the highest percentage since the onset of the COVID pandemic in 2020, the survey said.
And that spending will be lower on tech, averaging $417, down 16% from $498 last year. Conversely, parents will spend $323 on clothing, a 22% increase over last year’s $264, as clothing costs rise.
To gather its findings, Deloitte tabbed an independent research panel, which conducted an online survey of 1,207 parents with at least one child entering grades K to 12 this fall. The research was performed from May 22 to May 29, with a margin of error of plus- or minus-3 percentage points.
Less tech spending
Thanks to the AI boom that has led to “RAMageddon” — a global memory chip supply shortage — prices for all types of tech products are significantly higher. Laptops, phones and gaming consoles are hundreds of dollars more expensive, and that won’t ease any time soon.
Accordingly, parents are holding back on tech purchases for the new school year, Deloitte found. Back-to-school shoppers will spend $81 less on tech, which the survey said includes computers and hardware, gadgets and digital subscriptions.
Gone are the days of rushing to upgrade. A CNET Group TechPulse Research Study found that 73% will keep their devices as long as they still work, and 76% won’t upgrade until they think the new devices are “clearly worth it.”
An online arsenal
Amid worries about the economy, parents are maximizing the internet to get the best bang for their buck. The survey found that 80% of people are using at least one internet tactic, and the more they use, the more they spend. Folks using search, social media and generative AI (like ChatGPT, Gemini and Claude) will spend $737 per child this year — $206 more than parents who are using search and social but not AI, the survey found.
Retailers should take note of the correlation, the survey advises. “The implication is clear: The more digitally engaged the shopper, the greater the spending potential,” the authors said.
But Deloitte found that back-to-school shoppers are using the internet to learn about promotional events, such as those offered by major merchants like Amazon, Walmart and Target. The survey found that 68% of parents plan to shop during these promos, and 54% said that they often make unplanned purchases spurred by promos and discounts.
These price hunters often wind up spending more as they stretch their budgets to cover more items, the survey said. The researchers classified 31% of parents as “hyper-value seekers,” which are those who use four or more of these strategies: switching to a cheaper brand, choosing a private label over name brands, shopping at more affordable retailers, buying in bulk and using cashback websites. These parents will spend 14% more.
Gen AI’s influence is backed up by recent data. A May report from Adobe Analytics found that consumers who referred to retail websites via AI tools spent 53% more money than shoppers who didn’t. The data showed that people using AI for shopping recommendations stay longer on retailer websites and are more likely to buy something.
Deloitte told CNET that the surveyed parents plan to use AI in various ways this year — comparing prices (22%), researching products (19%), finding new products (15%), budgeting expenses (15%), reading reviews (14%) and completing purchases (10%).
Deloitte said that 67% of retail executives surveyed will have tailored experiences, targeted campaigns and loyalty programs driven by AI within the next year.
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