Consumer Behavior
Back-to-school shopping may be a record-setting event
July 18, 2023
Consumers are predicted to spend $41.5 billion for back-to-school shopping — a record setting event given spend will be up $36.9 billion over 2022 and will surpass the previous high point of $37.1 billion in 2021.
Back-to-college spending should hit $94 billion, about $20 billion more than last year's record.
Those are predictions from the National Retail Federation's annual survey conducted by Prosper Insight & Analytics.
"Back-to-class shopping is one of the most important consumer shopping occasions of the year. Our research for 2023 shows American consumers are eager to jump start their back-to-school and college purchases early," NRF President and CEO Matthew Shay said in a press release on the survey. "Retailers have been preparing for months to ensure they are well stocked with essential items that families and students need for the school year."
As of early July, more than half (55%) of consumers who are buying for back-to-class said they have already started shopping, according to the survey. The figure is on par with last year, but is up from 44% in 2019. While consumers have started shopping early, as of early July, 85% said they still have at least half of their shopping left to do.
Forty-three percent of those who are spending more than last year say it is because they need more new items, up from 32% last year. Spending on big-ticket items such as electronics and furnishings as well as necessities like food accounts for more than half of the increase in total back-to-college spending this year.
"Even though consumers plan to spend more on school and college-related items this year, they are still looking to find the best value and deals," Prosper Executive Vice President of Strategy Phil Rist said in the release. "Consumers are stretching their dollars by comparing prices, considering off-brand or store-brand items, and are more likely to shop at discount stores than last year."
