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Price-conscious shoppers are delaying back-to-school spending

Consumers plan their spending around key discount days such as Labor Day sales, HubBox survey shows.

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Supply Chain Xchange Staff
By Supply Chain Xchange StaffAug 14, 2024
Supply Chain Xchange Staff
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U.S. shoppers are planning their back-to-school spending around key discount days, extending the start of the school shopping season for retailers, according to research from HubBox, an e-commerce software provider that supports shipment delivery to local pickup points.

For example, 66% held off making back-to-school buys until Amazon Prime Day, while 73% plan to capitalize on back-to-school deals during the Labor Day sales, the Atlanta-based firm said. Those numbers come from research of over 1,000 U.S. shoppers polled online by Savanta on behalf of HubBox in July 2024.

The shift in shopping patterns is important because the average household intends to spend $1,196.20 during back-to-school 2024 across fashion, stationery, electronics, and other academic accessories.

However, while statistics show that inflation has tapered off to just a few ticks above the Fed's 2% target, many retail prices remain stubbornly high, triggering inflation-driven spending caution in the market. HubBox found that three quarters (73%) of those making back-to-school purchases are trying to limit their spending, with the same proportion (73%) trying to reuse items bought in back-to-school 2023 for this academic year to save money.

“After a prolonged period of price rises, U.S. shoppers have become much savvier in how, where and when they spend, meaning brands need to fight harder for share of wallet,” Sam Jarvis, CEO of HubBox, said in a release.

“With shoppers trying to make back-to-school budgets go further, this has put increased emphasis on discounting events, which means the extended back-to-school season is now bookended by Prime Day in July right through to September’s Labor Day sales. And that’s putting extra pressure on retailers’ delivery networks over a longer period, especially when consumers increasingly demand fast, but also convenient fulfillment options,” Jarvis said.

Another hurdle for retailers is that with 63% of back-to-school purchases being last-minute orders, consumers increasingly demand rapid fulfillment options; 84% of those polled by HubBox said timely fulfillment was key for their back-to-school purchases.

According to HubBox, its shipping software can help resolve those challenges by integrating local pickup points globally, thereby enhancing fulfillment flexibility and boosting conversion rates and average order value (AOV).

 

 

 

 

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ArticleE-CommercePlanTech & InfrastructureFinance & Strategy
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