According to a Deloitte survey released on Wednesday, back-to-school spending is anticipated to decline for the first time in nine years as consumers of all income levels prioritise essentials over non-essential purchases in the face of persistent inflation.

According to the survey, consumers will spend 10% less this year, with the average amount spent per child falling to $597, and the whole back-to-school industry is predicted to contract to $31.2 billion from $34.4 billion in 2022.

“Although parents were willing to endure higher prices last year for replenishing (back-to-school) items after the pandemic, 18 months of inflation have changed their tune,” Deloitte said, citing its survey of over 1,200 parents of school-aged children.

According to the survey, Americans are prioritising the most basic necessities while putting off buying new school supplies and electronics. Spending on fashion and technology is expected to decline 14% and 13%, respectively.

Spending on school supplies is predicted to increase by 20%, according to Deloitte.

In a poll conducted by Deloitte, nearly one-third of households reported having worse financial circumstances than the previous year, and 51% anticipated further economic weakness throughout 2023.

“This back-to-school season is all about economizing. Consumers are looking to save by shopping early, searching out deals, prioritizing spend to essential school supplies … they’re on the hunt for those bargains,” Stephen Rogers, executive director at Deloitte’s Consumer Industry Center, said.

According to a survey by Deloitte, 69% of consumers plan to rely on Amazon’s Prime Day deal, and nearly 60% of all anticipated back-to-school purchases will be finished by the end of July, up from 53% a year ago.

After a record season in 2022, “people this year are like ‘what is the bare minimum I need to do to get my kids out the door on those first couple weeks of school?'” In order to get through the first few weeks, (parents) are merely buying the necessities, according to Lupine Skelly, leader of Deloitte’s retail research.

(Adapted from USNews.com)

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