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This back-to-school shopping season, it seems some parents are questioning where their loyalty lies. Brand loyalty, that is.
Majorities of parents said they’d choose affordability over their preferred brand or retailer while shopping for back-to-school supplies, according to a survey of about 1,200 parents of school-aged children conducted by Deloitte from May 22 to May 30.
But with the value of the $31.3 billion back-to-school shopping sales market holding fairly steady compared to last year, there are still opportunities for brands to create trust and loyalty among shoppers, Deloitte researchers, execs, and analysts wrote in its 17th annual back-to-school survey.
Bargain hunting: This year’s back-to-school shoppers are prioritizing value, per the report. For instance, they’re shopping earlier to secure the best deals, switching to private labels, and spreading their spending across more retail formats:
- As of May, 66% of back-to-school budgets were expected to be spent in July, compared to 59% last year, according to Deloitte.
- Half of survey respondents said they’ll buy private labels versus name brands, compared to 36% in 2023.
- Parents are also shopping across more destinations—an average of 4.7 formats, up from 3.9 last year. Online retailers and department stores are among the top options.
With 62% of parents looking to stick to their fixed budgets, brand loyalty is at risk, Deloitte found: 67% said they’d buy a different brand if their preferred option was expensive, and 62% said they’d shop at a more affordable retailer over their preferred choices.
Value add: Still, loyalty programs and incentives can help keep people shopping, as can a few other tactics, according to the report, like a time-honored child’s, “Pleeeeeeeeeease.” Many parents aren’t immune to the charms of their children, even when they’re on a budget:
- Deloitte found that 85% of respondents said their children could influence them to spend on their “must-have” back-to-school brands or products.
- Additionally, 62% said their children’s preferences tend to convince them to spend more money.
“By creating a fun and memorable shopping experience for children, retailers could increase their appeal to parents and encourage impulse purchases,” the authors wrote. That could include the online experience, too, with one-third (33%) of back-to-school shoppers planning to use social, up from 21% last year.
School splurge: Parents are mostly splurging on back-to-school items to make the transition back to classes more exciting for their kids and to boost their confidence, per Deloitte.
Social media shoppers are even more likely than the general group to spurge: 95% said they could be influenced to do so, compared to 81% of others. But, they’re also less focused on brand names, with 59% likely to buy private labels over name brands, compared to 46% of others.