It’s that time of year again when retailers, parents and students prepare for one of the biggest events of the year: back to school. Regardless of when school starts, back-to-school shopping this year brings some different stressors for brands and consumers. For example, UK parents have been spending less than last year as they prioritise their household spending considering persistent inflation.
With price top of mind, Deloitte’s recent Back to School Survey found that two in 10 shoppers are undecided about whether to purchase back-to-school items in-store or online, resulting in a $6.3 billion opportunity for retailers. Notably, the UK retail market is still above pre-pandemic levels, having increased 12.2% in the region, but converting the customer may take more effort – due to the higher prices of everyday items alongside the shift in spending, consumers are engaging in more comparison shopping.
It’s a similar story in the US: according to recent data from the NRF, shoppers are looking to find the best value and deals. Consumers are stretching their dollars by comparing prices (45%), considering off-brand or store-brand items (39%), and fewer people are making do with last year’s items. They are also responding to sales and offers given their price sensitivity this year, taking advantage of sales such as Amazon’s Prime Day.
Affordability a key influencer this autumn
Coveo’s recent Ecommerce Relevance Report points to affordability as a major factor in consumer shopping behaviour. In fact, of the 4,000 UK and US working adults surveyed, the vast majority (83%) said they are relying on more affordable stores or buying more private-label products. This doesn’t bode well for brand loyalty – consumers in the UK are less brand loyal and even more likely to buy private products than their US counterparts (42% and 37% respectively), while younger groups are more likely to shop at more affordable stores than older generations.
This trend also falls in line with the latest data from the abovementioned Deloitte report, as UK consumers are forecasted to cut back on back-to-school spending in reaction to the higher cost of living. The survey also found that six in 10 shoppers generally prioritise retailers with competitive pricing, favouring mass merchants. Even with these financial concerns, many parents are willing to spend more on better-quality products to treat their children. Even more interesting is children’s influence on their parents – respondents said their offspring can convince them to splurge on clothing (57%) and tech products (56%) in particular.
With the economic pressures that families faced this year on the heels of a challenging past few years, retailers need to keep on top of the trend of comparison shopping more than ever. Due to the extra price sensitivity this year, special offers and sales are particularly attractive; however, it’s worth noting that shopper willingness to invest more in certain categories represents an opportunity for retailers. Also worth noting is that seasonal events may carry significant time sensitivity, and those shoppers who want to avoid potential shipping delays may prioritise retailers with either free shipping or in-store pickup options.
Create a personalised experience, but don’t push for personal details
The need to personalise and capture the attention of online shoppers is even more important this year. Retailers should keep in mind, however, that shoppers prefer anonymity. When we recently wrote about findings from Coveo’s ecommerce report, one of the running trends we discussed was that of consumer behaviour and views on giving away personal information while shopping:
- Nearly half of the respondents (48%) said that they have abandoned an online purchase when asked to create an account and 32% stated that they always checkout as a guest.
- More than half of respondents (57%) are also unaware of how much data they share when shopping online.
- However, consumers don’t seem too concerned about this when they get something in return — 52% said that they are willing to share data when shopping online if it means they get better deals and offers.
The trend towards trading personal information for special offers creates an opportunity for brands at the start of the academic year and could make a difference for comparison shoppers with affordability at play. Retailers must continue to focus on their customers, meeting them where they are, especially as outside economic pressures and personal motivations shape shopping behaviour. This will help brands ride out the storm and lead to back-to-school campaigns that resonate – and set them up for success as other fall events and holiday shopping peaks quickly approach.
- About the Author
- Latest Posts
Jeff Becker serves as the Vice President of Enterprise Sales at Coveo. In his role, he is responsible for managing a group of experienced account executives, working throughout various industries including high technology and retail. Jeff has the expertise and experience building successful sales teams, focusing on positive business outcomes for their clients.
Prior to Coveo, Jeff has over 25 years of experience in various managerial and leadership positions, including 10 years at IBM leading the Watson customer engagement team in the East, Director of Global sales at Sterling Commerce, as well as other leadership positions in customer engagement and consumer goods companies.
