2018 back-to-school survey

2018 back-to-school survey
Sizing up the season

2018 back-to-school surveyCopyright © 2018 Deloitte Development LLC. All rights reserved. 2
Key findings
Deloitte’s 2018 back-to-school survey
• Mass merchants remain the top location for intended visits and budgeted B2S spend
• Price-based retailers keep their high ranking positions among top shopping destinations after pushing down
traditional department and specialty clothing stores in 2017
• Despite less planned traffic to traditional retailers (e.g., department, home electronic, and office-supply stores)
parents expect to spend more at these retailers than they spend at price-based retailers
• Across categories, higher-income shoppers are more likely than lower-income shoppers to visit specialty stores
(e.g., department stores, home electronics, specialty apparel). Lower-income shoppers are more likely than
higher-income shoppers to visit price-based formats (e.g., mass market, dollar stores)
• Department stores are less popular with GenXers and Millennials, whereas off-price retailers are more popular
among the younger generations
Customers have strong preferences about retail format; ranks have shifted in recent times
• Total back-to-school spending is expected to reach ~$27.6B, or $510 per household, slightly up from $501 in 2017
• $5.5B is up for grabs. Shoppers remain undecided on where to spend 20% of their budget: online or in-store
• Households plan to spend an average of $292 in stores – representing $16B in total spending. This is more than
double that of the $115, or $6B in total spending, they say they’ll spend online for back-to-school
• B2S is experiencing plateauing digital influence, there is flattening usage of laptops, mobile, and social
• Children will likely influence over $21B in B2S spending during the back-to-school season
In-store still prevails, but shoppers are continuing to increase their online spend
• About two-thirds (62 percent) of parents plan to begin the B2S shopping before August; this group of early
shoppers spends on average about $100 more than shoppers that get a later start
• Approximately $18B will likely be spent in B2S shopping in the 4 week period between mid-July and mid-August
• More than two-thirds (68 percent) of shoppers plan to complete their shopping within a 1 month period of time;
however, the longer someone extends their B2S shopping, the more they will likely spend
Back to School Shopping is a lengthy season, but timing matters

Back-to-school (B2S) shopping season accounts for about 50%
of annual school-related spend and touches one-quarter of U.S.
households
* Number of households with school going (K-12 grades) children in the US [Source: US Current Population Survey 2017]
** Number of children enrolled in K-12 grades in the US [Source: US Current Population Survey 2017]
# Percentage of child’s annual school related products that will likely be purchased during back-to-school shopping season [Source: Deloitte survey]
^ Deloitte calculations on back-to-school market spend ($27.6 billion) [Source: Deloitte survey and US Current Population Survey 2017]
B2S is the second biggest shopping season and involves…
54 Million children** $27.6 Billion in spend^
50% of school related spend#29 Million households*
Average B2S spend per household: $510

Back-to-school shopping spend expected to be dominated by
clothing category
B2S 2018 ― Estimated market spend by category
Source: Deloitte calculations on back-to-school market spend ($27.6 billion) [Source: Deloitte survey and US Current Population Survey 2017]
Note: Sample size (N) = 1,200
*Electronic gadgets include cell phones/smart phones, tablet/e-reader, and wearable devices
School supplies
$6.0B
Clothing & accessories
$15.1B
$27.6B
est. market size
Computers & hardware
$3.7B
Electronic gadgets*
$2.8B

Average B2S spend is up slightly at $510 in 2018 compared to
$501 in 2017
National Avg. B2S spend:
$510 Northeast
West
South
Midwest
24% $513
% of total B2S spend Avg. spend
21% $493
34% $488
21% $568
Northeast region has the highest B2S season average spend in 2018
Source: Deloitte survey
Note: Average spend based on shoppers from each region – South (n = 424), Northeast (n = 230), Midwest (n = 264), and West (n = 282).

High-income households are most optimistic about household finances and the economy.
They are open to retailers that offer premier products and experiences.
Economic optimism and demand for experiential retailing
increase with household income
Low-income
(Less than $50k)
Middle-income
($50k-$99k)
High-income
($100k+)
Economic optimism
More confident about the U.S.
economy’s prospects now (June 2018),
than you were at the end of 2017
Household financial stability
Household's financial situation today is
better than it was a year ago
Digital substitution
Buying fewer traditional school supplies
because my child is using more digital
technologies
Premier retailing experience
More likely to purchase from retailers
that offer premier products and
experiences
Price sensitive retailers
More likely to purchase from a retailer
that sells at the lowest possible prices
24% 40% 44%
27% 27% 39%
28% 38% 41%
81% 76% 70%
28% 38% 44%
“Please indicate your level of agreement with the following statements (% who agree or somewhat agree)”

Both demand and avg. spend is high for Clothing & accessories;
highest avg. planned spend is in the Computers & HW category
Note: Sample size (N) = 1,200; *Electronic gadgets include cell phones/smart phones, tablet/e-reader, and wearable devices
Spending on ‘voice and mobile data plans’, ‘digital subscription’, and ‘other’ are excluded; average spend includes only respondents who will purchase the above
mentioned category or item
2018 B2S: Planned spend by category
98% plan to buy
Clothing & accessories
Average spend $286
Share of B2S spend 55%
98% plan to buy
School supplies
Average spend $112
23% plan to buy
Computers & hardware
Average spend $299
16% plan to buy
Electronic gadgets*
Average spend $271

Children will likely influence over $21B in B2S spending
Note: Sample size (includes only respondents who will purchase the above mentioned category or item)
20%
30% 32%
42%
80%
70%
68%
58%
Clothing & accessories Electronic gadgets School supplies Computers & hardware
Children - No/Slight influence Children - Moderate/High influence
Extent of child’s influence on parents’ back-to-school shopping
$12.7B$2.4B
*Total planned B2S spend by category that would be influenced by children
$2.2B$0.6B $4.2B$1.7B $2.5B$1.2B
Child’s
influence*

$5.5B is up for grabs. Shoppers likely to remain undecided on where they will spend 20% of
their budget: online or in-store
In-store is likely to be the most preferred channel during B2S
shopping season…
B2S spending by channel
Average B2S spend in 2018: $510
Average spend: $292
Share of total spend: 57%
In-store
Online
Average spend: $115
*Undecided (In-store or Online)
Undecided* ?
Average spend: $104
$15.7
Billion
$6.3
Billion
$5.5
Billion
Market size

Online likely to pick up from undecided in Computers & HW, where in-store likely to pick up
from undecided in Electronic gadgets
…But, online likely to gain share across most categories
33%
31%
17%
14%
37%
40%
63%
66%
30%
29%
20%
20%
40%
28%
19%
17%
40%
53%
61%
61%
20%
19%
20%
22%
Clothing &
accessories
Computers &
hardware
Electronic gadgets
School supplies
In-StoreOnline Undecided
2017 2018Category

2016 2017 2018
1 1 1
4 2 2
5 3 3
14 5 4
3 4 5
2 6 6
9 8 7
7 7 8
- 10 9
11 9 10
10 11 11
15 13 12
8 12 13
12 14 14
6 15 15
- 16 16
16 17 17
12 18 18
“Which type of retailer(s) do you plan to visit for your B2S shopping?”
Mass merchants retain their place as the most popular type of
B2S retailer; however price-based and online retailers are gaining
Question: “Which type of retailer(s) do you plan to visit for your B2S shopping?”
Note: Sample size (N) = 1,200; multi-select question
3%
4%
7%
8%
9%
9%
11%
15%
15%
17%
20%
26%
27%
31%
32%
36%
38%
83%
Bookstores (On-campus)
Catalogs
Retailer mobile apps
Specialty clothing stores
Bookstores (Off-campus)
Supermarkets
Home electronics stores
Consignment shops/thrift stores
Drug stores
Retailer websites
Warehouse membership clubs
Fast fashion apparel retailers
Traditional department stores
Office supply/technology stores
Off-price stores
Online only retailers
Dollar stores
Mass merchants
Rank Retail format preferences
Upward movement in
preference rankings
Downward movement in
preference rankings

7%
7%
6%
5%
4%
2%
2% 2% 2% 2%
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
Mass
merchant
Traditional
department
Fast fashion
apparel
retailers
Online-only
sites
Off-price
stores
Office
supply
Dollar
stores
Retailer
websites
Specialty
clothing
Warehouse
clubs
Home
electronics
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
AverageB2Sspend($)
Shopperpreference(%)
Shopper Preference (Retail format for most spend during B2S season) % Average Back-to-School Spend $
Retail formats for most spend and Average B2S Spend
Some of the most preferred formats are likely to have lower
overall spend
Note: Sample size (N) = 1,200;single-select
55%
60%
56%
54%
52%
Some of the less preferred formats are likely to have high overall spend

Shopping activity peaks by early August during B2S season
B2S Shopping periods by traffic and total spend
Approximately 90% of B2S shoppers are expected to be active during late July to early
August, a time which accounts for two-thirds of all B2S spend
Question : “Out of $__ you plan to spend on back-to-school shopping, how much do you plan to spend during the following periods?”
10%
26%
54%
67%
34%
8%
Earlier than July Early in July
(first 2 weeks)
Later in July
(last 2 weeks)
Early in August
(first 2 weeks)
Later in August
(last 2 weeks)
September
$1.3B $3.6B $8.1B $9.9B $3.9B $0.8B
$ B
Total B2S Spend (out of $27.6B)
during noted period
% of active B2S shoppers
during noted period

Majority of shoppers start earlier than August
Parents who begin their B2S shopping before August are likely to
spend 20 percent more than late starters
Note: Sample size (N) = 1,200; “When are you likely to begin your B2S shopping?”
July SeptemberAugustEarlier than July
10%
EarlyinJuly
19%
LaterinJuly
33%
EarlyinAugust
31%
LaterinAugust
6%
1%
62% plan to begin shopping before August
(Average spend = $544)
$532 $553 $543 $473 $384 $284
Average B2S
Spend
38% plan to begin shopping in Aug or later
(Average spend = $455)
B2S shoppers by starting period (%)
68% of shoppers plan to complete their shopping within a one-month
period of time from when they start

Early shoppers are more deal-seeking and mobile-savvy
compared to late shoppers
Early shoppers
Avg. spend: $544
Late shoppers
Avg. spend: $455
B2S Category
I expect to find the best back-to-school deals early in
the season
I plan to shop at different points throughout the
summer to take advantage of deals
My choice of retailer is dependent on availability of my
preferred brands
Use/plan to use Smartphone for back-to-school shopping
Belong to low-income household (Less than $50,000)
40%
66%
56%
55%
45%
27%
50%
49%
50%
37%
Early shoppers – Those who start shopping before August
Late shoppers – Those who start shopping in August or later
Note: Sample size - Early shoppers n=741, Late shoppers n=459

Device
% of total
shoppers
Usage
However, more shoppers plan to use mobile than desktop/laptop during B2S shopping
B2S shoppers are more likely to make online purchases via
desktop/laptop
41%
44%
53%
56%
63%
Compare similar products online
Collect discounts, coupons, sale
information
Make a purchase
Get price information
Access a retailer's website
44%
46%
53%
56%
57%
Access a mobile shopping app
Make a purchase
Get price information
Access a retailer's website
Collect discounts, coupons, sale
information
Note: Sample size for devices (includes only respondents who selected each of the devices); multi select question
53%
MobileDesktop/
laptop
49%
n = 588
n = 639
Vs
57%
(2017)
(2018)
(2018)
Vs
49%
(2017)

“Please indicate your level of agreement with the following statements (% who agree or somewhat agree)”
Customers expect online and physical shopping experiences to be
complementary
56%
52%
46%
40%
34%
28%
Research online before purchasing products in the
physical store
Purchase from online retailers who offer free shipping
Prefer to purchase from retailers offering buy online
and return in-store option
When shopping online, I prefer loyalty programs that
provide faster or cheaper shipping than product
discounts
Prefer to purchase from retailers offering buy online
and pick-up in-store option
I will shop in stores less this season because buy
online and pick-up in-store option is more convenient
63%
56%
49%
44%
38%
31%
2017
responses

14%
15%
16%
27%
39%
44%
59%
63%
To post to or view virtual image
boards
To watch a retail/product video
To post comments, reviews or
feedback
To visit retailers' pages on social
networking sites
To read reviews/recommendations
To browse products
To receive a coupon
To find out about promotions
“Do you plan to use social
media sites to assist in your
B2S shopping?*”
Most who plan to use social media will do so to find promotions, receive coupons,
and browse products
Less than 1/4th of shoppers likely to use social media during B2S
shopping season
“With regard to your B2S shopping, how do you plan to use
social media sites? #”
Notes: *Sample size (shoppers who use at least one digital device, n = 985 #Multi-select question (n = 225)
23%

Technology adoption among B2S shoppers has shown smaller movement during the last
three years; customers may be waiting for the next innovation in usage and/or technology.
B2S shoppers may be reaching a digital saturation point
51%
49%
53%
59%
57%
49%
32%
27%
23%
2016 2017 2018
Smartphone for shopping Desktop/Laptop for shopping Social media sites to assist in shopping*
B2S shoppers planning to use each technology platform (2016-2018)
Note: Sample size for each year – 2016 (n = 1,194), 2017 (n = 1,200), 2018 (n = 1,200)
*Sample size (shoppers who use at least one digital device) in each year – 2016 (n = 951), 2017 (n = 978), 2018 (n = 985)

4%
4%
37%
44%
57%
Digital
payment
Gift Card
Cash/Check
Credit Card
Debit Card
“Which of the following payment methods will you likely use for your B2S purchases?”
Digital payment penetration remains low
Payments using credit and debit card are more preferred, though
preference between the two depends on income levels
61%
51%
60%
40%
52%
40%
26%
30%
43%
4%
3%
5%
3%
3%
4%
Baby Boomers GenXers Millennials68%
58%
40%
25%
48%
68%
53%
29%
20%
5%
3%
4%
2%
4%
5%
Less than $50,000 $50,000-$99,000 $100,000 and over
Debit Card Credit Card Cash/Check Gift Card Digital payment
Note: Sample size (N) = 1,200; Multi-select question
Generation
Household income
Overall

Along with mass merchants, conventional retail formats – traditional department stores and
home electronic stores – are among the most preferred destinations for the B2S season.
Customers intend to shop the most at conventional retail formats
– mass merchant, department, and electronics stores
Rank Clothing & Accessories
Electronic gadgets/
Computer & hardware
School Supplies
1 Mass merchants Mass merchants Mass merchants
2
Traditional department
stores
Home electronic stores
Office supply/
technology stores
3
Fast fashion apparel
retailers
Online only sites Dollar stores
4 Off-price stores
Office supply/
technology stores
Online only sites
5 Online only sites
Warehouse membership
clubs
Warehouse membership
clubs
Top five preferred retail formats – By category
Question: “Which type of retailer will you shop the most for ______ during this back-to-school season?”
Note: Sample size (includes only respondents who will purchase the above mentioned category); single-select question

38%
26%
13%
9%
2%
4%
35%
20%
16% 15%
5%
3%
48%
11%
13%
15%
4% 3%
43%
16%
14% 14%
4% 3%
Boomers
GenXers
Millennials
Overall
Mass merchants Traditional
department
stores
Fast fashion Off-price stores Online only* Speciality
clothing stores*
While traditional department stores are likely to find favor with older generations, off-price
stores are preferred by Millennials after mass merchants.
Mass merchants are likely to be the most preferred retail formats
across generations for Clothing & accessories
Preferred retail formats for Clothing & accessories – By generation
* Sample size at generation-level has fewer than 30 respondents
Question: “Which type of retailer will you shop the most for clothing and accessories during this back-to-school season?”
Note: Sample size – Boomers (n = 138), GenXers (n = 393), Millennials (n=615), Overall (n=1,174)

31%
22%
18%
13%
5% 6%
39%
20%
16%
13%
5%
3%
53%
9% 10%
16%
3%
2%
43%
16%
14% 14%
4% 3%
High-income ($100k+)
Middle-income ($50k-$99k)
Low-income (Less than $50k)
Overall
Mass merchants Traditional
department
stores
Fast fashion Off-price stores Online only* Speciality
clothing stores*
However, traditional department stores are likely to find more favor with high-income
households than lower-income
More than half of low-income households plan to shop at ‘mass
merchants’, compared to one-third of high-income households
Preferred retail formats for Clothing & accessories – By income
* Sample size at household income-level has fewer than 30 respondents
Question: “Which type of retailer will you shop the most for clothing and accessories during this back-to-school season?”
Note: Sample size – High-income (n = 339), Middle-income (n = 341), Low-income (n=494), Overall (n=1,174)

Shoppers preferring traditional department stores and fast fashion stores are likely to spend
the most on clothing and accessories.
Average clothing and accessories planned spend is higher at
department and fast fashion stores than at mass merchants
$234
$390
$338
$277
$279
$320
Mass merchant stores
Traditional department stores
Fast fashion apparel retailers
Off-price stores
Online only sites
Specialty clothing stores
Average ‘Clothing & accessories’ spend – By most preferred format
Question: (1) “Which type of retailer will you shop the most for clothing and accessories during this back-to-school season?”
Question: (2) “For the following categories, please indicate the total amount you estimate you will spend during back-to-school shopping season?”
Note: Sample size (includes only respondents who will shop the most for ‘Clothing & Accessories’ from the above mentioned retail formats)

26%
23%
21%
15%
9%
34%
29%
20%
7%
4%
46%
23%
17%
7%
3%
36%
25%
19%
9%
5%
Overall
Mass Merchants Home electronic
stores
Online only* Office supply/
technology stores*
Warehouse
membership clubs*
When it comes to high-income shoppers, conventional stores – mass merchants and home
electronic stores – will likely have a tough competition from online only formats
Dominance of mass merchants as the most preferred format for
technology products vary with income
Preferred retail formats for ‘Electronic gadgets/Computers & hardware’ – By income
Question: “Which type of retailer will you shop the most for electronic gadgets/computers & hardware during this back-to-school season?”
Note: Sample size – High-income (n = 117), Middle-income (n = 116), Low-income (n = 116), Overall (n = 349)

Average spend on technology products at Home electronics stores is higher compared to
other retail formats
Planned spend on electronic gadgets and computers at
conventional formats stays ahead of spend at online-only retailers
$334
$430
$318
$383
Mass merchant stores
Home electronics stores
Online only sites
Office supply/technology
stores
Average ‘Electronic gadgets/Computers & hardware’ spend ($) - By most preferred format
Question: (1) “Which type of retailer will you shop the most for electronic gadgets/computers & hardware during this back-to-school season?”
Note: Sample size (includes only respondents who will shop the most for ‘electronic gadgets/computers & hardware’ from the above mentioned retail formats)

$572
$592
$422
$552
$347 $363
$311
$105
$185
$355
$200
$302
$334
$430
$318
$383
Overall
Mass merchants Home electronic stores Online only* Office supply/ technology
stores*
Low income households are likely to spend the most at home electronic stores, almost
double their likely spend at mass merchants
Spend by higher income groups likely to be spread evenly across
mass merchants and home electronic stores
Question: (1) “Which type of retailer will you shop the most for electronic gadgets/computers & hardware during this back-to-school season?”
Note: Sample size (includes only respondents who will shop the most for ‘electronic gadgets/computers & hardware’ from the above mentioned retail formats)
Average ‘Electronic gadgets/Computers & hardware’ spend ($) - By income

63%
17%
3%
5% 5%
70%
12%
7%
4% 3%
70%
7%
16%
2% 2%
68%
11%
9%
4% 3%
Overall
Mass merchants Office supply/
technology stores
Dollar stores Online only* Warehouse
membership clubs*
Nearly two-thirds of shoppers are likely to prefer Mass Merchant stores for school supplies
shopping
Mass merchants are likely to hold clear lead over other retail
formats when it comes school supplies
Preferred retail formats for ‘School Supplies’ – By income
Question: “Which type of retailer will you shop the most for school supplies during this back-to-school season?”
Note: Sample size – High-income (n = 335), Middle-income (n = 341), Low-income (n = 501), Overall (n = 1,177)

About the survey
Survey timing: May 31 to June 6, 2018
Sample: The survey polled a sample of 1,200 parents of school-aged children, with respondents having at least
one child attending school in grades K to 12 this fall.
Methodology: The survey was conducted online using an independent research panel
Demographics
Income group (N=1,200):
• Low-income – Household income less than $50,000 (n=507)
• Middle-income – Household income between $50,000 and $99,999 (n=351)
• High-income – Household income $100,000 and more (n=342)
Region (N=1,200):
• West: (n=282)
• Midwest: (n=264)
• South: (n=424)
• Northeast: (n=230)

About the survey
This annual Deloitte survey was conducted online using an
independent research panel between May 31 and June 6, 2018.
The survey polled a sample of 1,200 parents of school-aged
children and has a margin of error for the entire sample of plus
or minus three percentage points.
All respondents had at least one child attending school in grades
K – 12 this fall.
This publication contains general information only and Deloitte is not, by means of this publication, rendering accounting, business, financial, investment, legal, tax,
or other professional advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision
or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional
advisor. Deloitte shall not be responsible for any loss sustained by any person who relies on this publication.
About Deloitte
Deloitte refers to one or more of Deloitte Touche Tohmatsu
Limited, a UK private company limited by guarantee (“DTTL”),
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The Deloitte Center for Industry Insights is the research
division of Deloitte LLP’s Consumer and Industrial Products
practices. The center’s goal is to inform stakeholders of critical
business issues, including emerging trends, challenges and
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the center provides unique perspectives and seeks to be a
trusted source for relevant, timely and reliable insights.

2018 back-to-school survey

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2018 back-to-school survey