Going back to school doesn’t mean going back to technological advancement. As inflation rises without corresponding wage growth, and consumer confidence worsens, parents are going online more and more to find deals, even if they’re not actually buying new tech products, according to Deloitte’s 19th Back-to-School survey.
For the fourth year in a row, back-to-school shoppers will spend less per child — $557 — as inflation continues to rise, and 57% of parents believe the economy will be worse in the second half of the year. That’s the highest percentage since the start of the COVID pandemic in 2020, the survey said.
And that spending will be less than technology, which is estimated at $417, down 16% from $498 last year. In contrast, parents will spend $323 on clothing, a 22% increase over last year’s $264, as clothing costs rise.
To compile its findings, Deloitte selected an independent research team, which conducted an online survey of 1,207 parents with at least one child entering grades K through 12 this fall. The survey was conducted from May 22 to May 29, with a margin of error of plus- or minus 3 points.
Less use of technology
Thanks to the AI boom that led to “Ramageddon” — the global shortage of memory chips — the prices of all kinds of technology products are very high. Laptops, phones again game consoles it’s hundreds of dollars more expensive, and that’s not going to slow down anytime soon.
Likewise, parents are holding back on technology purchases for the new school year, Deloitte found. Back-to-school shoppers will spend $81 less on technology, the survey said, which includes computers and hardware, gadgets and digital subscriptions.
Gone are the days of rushing to upgrade. The CNET Group TechPulse Research Study found that 73% will keep their devices as long as they last, and 76% won’t upgrade until they think new devices are “clearly not worth it.”
Online arsenal
Amid economic worries, parents are turning to the Internet to get the best bang for their buck. Research has found that 80% of people use at least one online trick, and the more they use, the more they spend. People who use search, social networks and generative AI (like ChatGPT, Gemini again Claude) will spend $737 per child this year — $206 more than parents who use search and social media but not AI, the survey found.
Marketers should be aware of correlation, research advises. “The implication is clear: The more digitally active a consumer is, the greater the likelihood of spending,” the authors say.
But Deloitte found that back-to-school shoppers are using the Internet to learn about promotional events, such as those offered by major retailers such as Amazon, Walmart and Target. The study found that 68% of parents plan to buy during these advertisements, while 54% said they often make unplanned purchases inspired by promos and discounts.
These bargain hunters tend to spend more as they stretch their budgets to cover more items, the study says. Researchers classified 31% of parents as “great value seekers,” which are those who use four or more of these strategies: switching to cheaper products, choosing private label over name brands, shopping at more affordable stores, buying in bulk and using cash-back websites. These parents will spend 14% more.
The impact of Gen AI is supported by recent data. A May report from Adobe Analytics found that shoppers who were referred to marketing websites with AI tools spent 53% more than shoppers who didn’t. Data has shown that people who use AI for shopping recommendations stay longer on retailer websites and are more likely to make a purchase.
Deloitte told CNET that parents surveyed plan to use AI in a variety of ways this year — to compare prices (22%), research products (19%), find new products (15%), budget expenses (15%), review readings (14%) and complete purchases (10%).
Deloitte said 67% of retail managers surveyed will have interactive, targeted campaigns and AI-driven loyalty programs within the next year.
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