A survey revealed that parents are increasingly going online to find deals in a difficult economic environment.
Since becoming fascinated by the Cambridge coffee shop webcam in the 1990s, I’ve written about VPNs, the NFL, smartphones, decent salaries, plus/minus and everything in between.
Back to school doesn’t mean a return to technology upgrades. As inflation rises without wage growth matching wage growth and consumer confidence deteriorates, parents are turning more online to find deals, even if they aren’t necessarily 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 think the economy will worsen in the second half of the year. This is the highest percentage since the start of the COVID pandemic in 2020, according to the survey.
And those expenses will be lower on technology, averaging $417, down 16% from last year’s $498. Conversely, parents will spend $323 on clothing, a 22% increase from last year’s $264, as clothing costs rise.
To gather its findings, Deloitte used an independent research panel, which conducted an online survey of 1,207 parents with at least one child entering grades K-12 this fall. The research was conducted from May 22 to 29, with a margin of error of plus or minus 3 percentage points.
Less technology spending
Thanks to the AI boom that led to “ramageddon” — a global shortage of memory chips — prices for all types of technology products are significantly higher. Laptops, phones And game consoles cost hundreds of dollars more, and that’s not going to go away anytime soon.
As a result, parents are holding back on their technology purchases for the new school year, Deloitte found. Back-to-school shoppers will spend $81 less on technology, which the survey found includes computers and hardware, gadgets and digital subscriptions.
Gone are the days of rushing to upgrade. A TechPulse study from CNET Group found that 73% of respondents will keep their devices while they still work, and 76% won’t upgrade until they think the new devices are “clearly worth it.”
An online arsenal
Amid concerns about the economy, parents are maximizing the Internet to get the most bang for their buck. The survey found that 80% of people use at least one Internet tactic, and the more they use, the more they spend. People using search, social media and Generative AI (as ChatGPT, Gemini And Claude) will spend $737 per child this year, $206 more than parents who use search and social media but not AI, according to the survey.
Retailers should take note of the correlation, the survey advises. “The implication is clear: the more digitally engaged the shopper, the higher the spending potential,” the authors said.
But Deloitte found that back-to-school shoppers are using the Internet to learn about promotional events, such as those offered by major retailers like Amazon, Walmart and Target. The survey found that 68% of parents plan to make purchases during these promotions, and 54% say they often make unplanned purchases driven by promotions and discounts.
These price hunters often end up spending more as they stretch their budget to cover more items, the survey found. Researchers classified 31% of parents as “hyper-value seekers,” meaning those who use four or more of these strategies: switching to a cheaper brand, choosing a private label over name brands, shopping at more affordable retailers, buying in bulk, and using cashback websites. These parents will spend 14% more.
The influence of Generation AI is supported by recent data. A May report from Adobe Analytics found that consumers who referred to retail websites through AI tools spent 53% more money than shoppers who did not. Data has shown that people using AI for shopping recommendations stay on retailer websites longer and are more likely to buy something.
Deloitte told CNET that parents surveyed plan to use AI in a variety of ways this year: comparing prices (22%), researching products (19%), finding new products (15%), budgeting expenses (15%), reading reviews (14%), and completing purchases (10%).
Deloitte said 67% of retail executives surveyed will benefit from AI-driven personalized experiences, targeted campaigns and loyalty programs in the next year.
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Since becoming fascinated by the Cambridge coffee shop webcam in the 1990s, I’ve written about VPNs, the NFL, smartphones, decent salaries, plus/minus and everything in between. See full bio