Anticipated back-to-school spending in the US projected to surpass $33 billion
In the midst of ongoing economic uncertainties, American consumers are adapting their spending habits to cope with inflation and supply chain disruptions during the 2022 back-to-school season. This strategic approach reflects broader trends that have emerged in recent years.
Consumers have become more cautious with their budgets, prioritizing essential purchases over discretionary items. This cautiousness has led to a decline in demand for goods at times, as some spending had surged earlier in the year in anticipation of tariffs or inflation spikes, leading consumers to "front-load" purchases and then reduce spending later.
To counteract these challenges, consumers are seeking value and convenience. There is a growing preference for delivery formats and services that offer convenience, such as subscription or on-demand models, which can also provide more personalized and affordable options. Consumers respond well to businesses that enable easier access to goods and services, optimizing convenience despite supply issues.
Some consumers have improved their financial outlook and access to credit, although credit card interest rates remain high. This mixed dynamic means some use credit to manage expenses while others remain cautious about increasing debt amid inflation pressures.
In addition, consumers increasingly look for clear, accessible information about product attributes like health, sustainability, and local sourcing. They also value personalized experiences that anticipate their purchasing patterns and needs, helping them make better-informed and cost-effective decisions.
As part of their adjusted purchasing habits, consumers are buying fewer durable and nondurable goods or delaying purchases until prices stabilize. However, these strategies have not been specifically detailed for the 2022 back-to-school context.
Amid these challenges, several retailers are offering incentives to attract customers. Dollar General, for instance, is offering back-to-school discounts, including 30% off digital coupons for teachers. Major retailers have launched summer sales with discounts on school supplies, and Amazon announced a four-day Prime Day sale this month.
Despite these efforts, nearly three-fourths of shoppers anticipate price increases due to supply chain issues or tariffs, and almost 65% expect product shortages. In response, shoppers are adjusting their strategies to cope with price hikes, seeking bulk discounts and promotions, shopping earlier, and switching to affordable or private-label brands.
To cope with limited product availability, shoppers plan to buy from different retailers or channels, shop earlier, and buy fewer items. U.S. consumers' back-to-school spending is projected to increase by 3.3% to $33.3 billion.
More than two-thirds of consumers expect inflation to limit their back-to-school spending. To navigate these constraints, shoppers are planning to cut back their spending on technology, clothing, supplies, and books and other educational materials. One in five shoppers are planning to use artificial intelligence tools to find deals online.
Interestingly, a fifth of consumers started their back-to-school shopping in June, up from 11% the year prior. This early shopping trend suggests a proactive approach to managing inflation and supply chain disruptions.
In conclusion, U.S. consumers during the 2022 back-to-school period are combining careful budgeting, prioritized convenience and personalization, using credit judiciously, and seeking transparency to manage inflation and supply chain disruptions effectively. Businesses adapting to these consumer strategies through innovation and improved supply chain management have better chances to meet demand successfully.
- Consumers, in response to ongoing economic uncertainties, have shifted their spending habits during the 2022 back-to-school season, prioritizing essential purchases over discretionary items.
- Alternatives like subscription models and on-demand services, which offer convenience, personalization, and affordability, are gaining popularity among consumers seeking value.
- Some consumers, despite high credit card interest rates, have improved their financial outlook and access to credit, leading to a mixed dynamic where some manage expenses using credit, while others remain cautious about increasing debt amid inflation pressures.
- Consumers are increasingly concerned about product attributes such as health, sustainability, and local sourcing, often valuing personalized experiences that cater to their purchasing patterns and needs.
- In the face of product shortages and price increases, many shoppers are adopting strategies like buying in bulk, shopping earlier, and switching to affordable or private-label brands.
- To navigate these constraints, one in five shoppers during the back-to-school season are planning to use artificial intelligence tools to find deals online. This early shopping trend, with over two-thirds of consumers starting their back-to-school shopping in June, suggests a proactive approach to managing inflation and supply chain disruptions.
