Back-to-School Survey 2016 Shopping for the Easy A
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1 Back-to-School Survey 2016 Shopping for the Easy A
2 Deloitte s 2016 Back-to-School Survey Key Insights & Findings Shoppers are likely to spend more this year, with early shoppers spending most but budgets vary by category Average total spend forecasted is $488 87% report that they are likely to spend the same or more than they did last year While clothing and school supplies still dominate back-to-school lists, computer and gadget shoppers spend the most on tech Those who start before August are likely to spend 26% more than those who start later Most shoppers are heading to physical stores and their lists are largely predetermined In-store still prevails over online for back-to-school season, except for purchases of technology 2/3 of spending for traditional categories clothing and school supplies will occur in store 67% say spending is more heavily influenced by the school s recommended list than by their children Nearly 1/3 will take advantage of pre-configured kits offered by the school or PTA Parents are using digital to do their research ahead of time; shopping is a surgical strike More than half will utilize smartphones during the shopping journey; almost 1/3 will use tablets 61% will research online before purchasing products in the physical store 25% plan to use social media, mostly for transactional information versus inspiration Copyright 2016 Deloitte Development LLC. All rights reserved. Presentation title 2 [To edit, click View > Slide Master > Slide master1]
3 87% of parents intend to spend the same or more compared to last year Parents cite need for more items, expensive items, and higher prices as the reasons behind their plan to spend more Average Anticipated 2016 Back-to-School Spend: $488 How will your spending this year on Back-to-School items compare with what you spent last year? Expect to spend the same 55% Expect to spend more 32% Expect to spend less 13% Why do you plan to spend more? Why do you plan to spend less? 1. Children need more items 2. Children need more expensive items 3. Prices are generally higher 1. Children need fewer items 2. Household has less money 3. Fewer children in grades K-12 81% say their financial situation is better or the same in 2016 Note: Sample size (N) = 1200 Copyright 2016 Deloitte LLP. All rights reserved Back-to-School Survey 3
4 School supplies, clothes/shoes, and backpacks top the list of products that parents plan to buy for their children Please select the following product categories which you are planning to buy for your student. School supplies 95% Clothes/shoes 92% Backpack/book bag/lunch box accessories 78% Jewelry/handbag/accessories 13% Computer 12% Tablet, e-reader Cell phone/smart phone Computer software/small accessories 10% 10% 9% 29% * plan to spend on technology products Printer or other computer hardware 6% Wearable technology 4% Note: Sample size (N) = 1200, multi select question * Shoppers who stated that they will buy at least one of the technology items Copyright 2016 Deloitte LLP. All rights reserved Back-to-School Survey 4
5 While clothing and school supplies still dominate back-to-school lists, computer and gadget shoppers spend the most on tech Category spend planned for 2016 back-to-school season Categories 19% plan to buy Computers & Hardware Average spend $456 20% plan to buy Electronic Gadgets Average spend $286 93% plan to buy Clothing & Accessories Average spend $239 98% plan to buy School Supplies Average spend $122 Note: Sample size (N) = 1200; Spending on voice and mobile data plans is excluded Copyright 2016 Deloitte LLP. All rights reserved Back-to-School Survey 5
6 Spending breakdown by category Average spend (by category buyer) planned for 2016 back-to-school season Categories Items Computers & Hardware $456 Computer Computer software/small accessories Printer or other computer hardware $158 $149 $546 Electronic Gadgets $286 Tablet, e-reader Cell phone/smart phone $255 $210 Wearable technology $209 Clothing & Accessories $239 Clothes/shoes Jewelry/handbag/accessories $228 $84 School Supplies $122 School supplies Backpack/book bag/lunch box accessories $81 $55 Note: Sample size (includes only respondents who will purchase the above mentioned category or item) Copyright 2016 Deloitte LLP. All rights reserved Back-to-School Survey 6
7 In-store still prevails for back-to-school season, but channel varies by category 2/3 of school supply shoppers will buy in a store; more than 1/3 of computer and hardware shoppers will purchase online Avg. Average B2S spending by channel Average consumer spending within category Computers & hardware Electronic gadgets In-store $273 30% $456 35% 28% $286 40% Online $109 35% Clothing & accessories n = % School supplies n = % 20% Undecided*? $106 19% $239 63% 14% $122 66% *Undecided (In-store/Online) Note: Sample size (N) = 1200 n = 1110 n = 1174 In-store Online Undecided (In-store/Online) Copyright 2016 Deloitte LLP. All rights reserved Back-to-School Survey 7
8 Most popular back-to-school items are usually purchased in a brick-and-mortar store Please select the following product categories which you are planning to buy for your student. School supplies: Paper, pencils, books, etc. 71% 11% 18% Clothes/shoes 64% 19% 18% Cell phone/smartphone 59% 20% 21% Backpack/book bag/lunch box accessories 57% 20% 23% Jewelry/handbag/accessories 48% 22% 30% Printer or other computer hardware 42% 29% 29% Computer software/small accessories 39% 34% 27% Voice and data phone plans (monthly) 35% 43% 22% Wearable technology 33% 40% 26% Computer desktop/laptop/notebook 33% 36% 31% Tablet, e-reader 27% 38% 34% In-store Online Undecided (In-store/Online) Note: Sample size (N) = 1200, multi select question Copyright 2016 Deloitte LLP. All rights reserved Back-to-School Survey 8
9 Shoppers that start early expect to spend more than those who wait Shoppers who start before August are likely to spend 26% more than late starters When are you likely to begin your Back-to-School shopping? 58% will begin shopping before August 33% 34% 7% 18% Early in July Later in July Early in August 8% Later in August 1% 0% Earlier than July July August September October Average Spend $692 $619 $457 $430 $394 $404 Note: Sample size (N) = 1200 Copyright 2016 Deloitte LLP. All rights reserved Back-to-School Survey 9
10 Spending on computers & hardware peak earlier in the season, whereas clothing peaks late Spending across categories by timing of back-to-school season 56% 37% 40% 48% 47% 44% 26% 28% 25% 22% 22% 22% 21% 21% 15% 15% 17% 19% 15% 16% 14% 11% 8% 4% Earlier than July Early in July Later in July Early in August Late in August September Clothing and Accessory Computers and related Electronic Gadgets School Items/Supplies Percentage represents the spend distribution (across categories) for the given time period Copyright 2016 Deloitte LLP. All rights reserved Back-to-School Survey 10
11 Back-to-school shopping is highly influenced by school recommendations Please indicate your level of agreement with the following statements (% who agree or somewhat agree) Pre-configured school kits My shopping is influenced more by the school's recommended products than my child's requests 67% I plan to shop at different points throughout the summer to take advantage of deals 65% 32% # The shopping season is less important to my family because we replenish school supplies throughout the year 36% I m buying fewer traditional school supplies because my child is using more digital technologies 31% Plan to take advantage of preconfigured kits of school supplies offered by child s school or PTA Note: Sample size (N) = 1200 Copyright 2016 Deloitte LLP. All rights reserved Back-to-School Survey 11
12 Devices play a role in the shopping journey, but people click more for information than to buy Smartphones are used more often than tablets Access a retailer's website 64% Mobile 53% Get price information Get/download discounts, coupons, sale information Access a mobile shopping app 61% 56% 55% Compare products to similar products 51% Access a retailer's website 71% Get price information 61% Tablet 30% Shop online Make a purchase 54% 53% Compare products to similar products 53% Note: Among shoppers who own a smartphone (n = 1148) or a tablet (n = 985); multi select question Copyright 2016 Deloitte LLP. All rights reserved Back-to-School Survey 12
13 Social media usage will increase, but will remain transactional Most will use social to find promotions, receive coupons, and browse products Do you plan to use social media sites to assist in your Back-to-School shopping?* With regard to your Back-to-School shopping, how do you plan to use social media sites? # To view promotions/ads 74% To receive a coupon 64% To browse products 45% 25% To read reviews/recommendations To visit retailers' pages on social networking sites To post comments, reviews or feedback To post to or view virtual image boards To watch a retail/product video 44% 30% 16% 16% 13% Notes: *Sample size (N) = 1200 #Multi select question (n = 302) Copyright 2016 Deloitte LLP. All rights reserved Back-to-School Survey 13
14 Shoppers do their research before going to the store and also look for perks when shopping online Please indicate your level of agreement with the following statements (% who agree or somewhat agree) Purchase from online retailers who offer free shipping 63% Research online before purchasing products in the physical store 61% When shopping online, I prefer loyalty programs that provide faster or cheaper shipping than product discounts 42% Prefer to purchase from retailers offering BOPUS* or buy online/return to store 40% I will shop in stores less this season because BOPUS 30% option is more convenient 2016 Note: Sample size (N) = 1200; *BOPUS = buy online/pick-up in-store Copyright 2016 Deloitte LLP. All rights reserved Back-to-School Survey 14
15 Discount and traditional department stores will remain the most preferred back-to-school shopping destinations in 2016 In what types of retail environments do you plan to do your back-to-school shopping? Discount/value department stores Traditional department stores Office supply/technology stores Dollar stores Online sites Specialty clothing stores Warehouse membership clubs Supermarkets Fast fashion apparel retailers Consignment shops/thrift stores Drug stores Bookstores Off-price stores Home electronics stores Catalogs Home furnishings and housewares stores 25% 24% 21% 19% 15% 12% 11% 10% 10% 6% 2% 35% 37% 42% 54% 57% Note: Sample size (N) = 1200, multi select question Copyright 2016 Deloitte LLP. All rights reserved Back-to-School Survey 15
16 Payment type varies by household income Digital payment penetration remains low Which of the following payment methods will you likely use for your back-to-school purchases? Overall Generation Digital payment 5% 48% 58% 42% 7% 2% 53% 58% 41% 5% 4% 68% 47% 56% 8% 7% Gift Card 7% Boomers GenXers Millennials Cash/Check Credit Card Debit Card 49% 53% 60% Household income 64% 32% 65% 9% 6% 71% 44% 61% 6% 5% 68% 57% 41% 9% 5% 57% 61% 43% 5% 4% 28% 72% 38% 7% 6% <$25,000 $25,000 - $49,999 $50,000 - $74,999 $75,000 99,999 $100,000+ Note: Sample size (N) = 1200; multi select question Debit card Credit card Cash/check Gift card Digital payment Copyright 2016 Deloitte LLP. All rights reserved Back-to-School Survey 16
17 About the survey The survey was commissioned by Deloitte and conducted online by an independent research company between June 22 27, The survey polled a sample of 1,200 parents of school-aged children and has a margin of error for the entire sample of plus or minus three percentage points. All respondents had at least one child attending school in grades K 12 this fall. As used in this document, "Deloitte" means Deloitte LLP and its subsidiaries. Please see for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting. Copyright 2016 Deloitte LLP. All rights reserved Back-to-School Survey 17
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