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Why retailers should cater to deal-hunting college students

July 28, 2016

The research is clear: retailers offering back-to-college promotions and boasting a strong social media presence are bound for success.

That's the finding of a new survey by Deloitte. The study reports parents expect to spend $1,345 on school supplies this year compared to college students, who plan to spend only $1,082. Part of this can be attributed to the fact that 71 percent of college students are using social media and other venues to find better deals.

"As expected, nearly half, or 45 percent, of the students surveyed plan to use social media to assist in shopping," Rod Sides, vice chairman, Deloitte LLP and retail and distribution practice leader, said in a release. "What's interesting is students are looking more for information rather than inspiration and brand interaction. They're searching for the best deals, discounts and reviews. This means retailers need to make sure their messaging is conveniently available and considers the right product with the right price."

The report also said more than half of college students (55 percent) plan to spend on technology compared to 44 percent of parents. Bookstores and college stores are still a top attraction for both groups.

"College-aged students are taking on more financial responsibility and have a larger say in purchasing decisions during back-to-school shopping," Sides said in the release. "Surprisingly, they're even willing to contribute more to the budget than parents expect. The survey also revealed that shoppers who plan to spend early in the season also expect to spend more money than those who wait until later. It's vital for retailers to recognize that this customer base is segmented between students and parents and they will need to be strategic in their timing and offering of promotional information."