77% of parents say inflation is #1 budget concern for back-to-school shopping

It might still be summer, but parents in the US have already started back-to-school shopping, and it’s clear budgets are getting stretched even thinner in 2024. Last year, 93% of parents surveyed spent an average of $794 on school supplies, including electronics, clothing, sports equipment and shoes. This year, while parents are hoping to spend less, 50% expect to go over budget due to rising costs and inflation. 

3 ways inflation and rising costs impact back-to-school shopping

As the top budget concern, inflation and rising costs impact when parents are going to shop, where they choose to shop and how they spend their money.

1. 52% of parents start back-to-school shopping earlier

If you think the back-to-school shopping season comes earlier and earlier every year, you’re not wrong. Families are starting to shop for essentials way before August and September, with 52% adding ruler-lined notebooks, 2B pencils and school uniforms to their carts in early and late July.

This timing shift might be due to budgeting concerns, spending more time looking for discounts, or trying to spread expenses over a longer period of time.

“Retailers will need to take a truly individualized approach, with personalized offers and messaging complementing the overall shopping experience for parents—no matter if executed in-store, online or both. First-party data will be the key for retailers in unlocking the wallet share with this season’s rush to get kids ready for their first days at scale,” says Pete Brusa, Epsilon’s Vice President of Vertical Growth Strategy for Retail. 

2. 62% of parents prefer to shop online

Between managing kids’ busy schedules, maintaining homes and balancing demanding jobs, parents are always looking for ways to save time and money. Online shopping reduces time spent running errands while also helping parents keep an eye on deals and discounts.

Sixty-two percent of parents prefer to shop for school supplies on Amazon, while 41% choose to shop at discount stores like Dollar Tree and Big Lots. For items like stationery, pencils, pens and binders, parents opt to shop in-store, while parents shop both in-store and online for items like clothing and shoes.

“We also anticipate even a larger democratization of choice for shoppers (where many big-box retailers will carry most of the voice), and it may simply come down to convenience and speed. Prime Day, as an example, has started to surface fundamental questions such as ‘Can they pick up their kids’ school supplies today in-store?’ and if not, ‘How fast can it be delivered to their doorstep?’” Brusa says. “The path of least resistance will be key, and retailers that can orchestrate that great shopping experience in a very personalized way will win the mind and wallet share for the season.” 

3. Price is the top factor that influences purchasing behavior

When it comes to where parents choose to shop and what they buy, price comes out on top, with 79% of parents citing it as the top influence. Beyond that, 80% of parents say that sales and discounts strongly impact which brands and stores they will shop at for back-to-school. ​

Parents’ social media accounts and their children’s opinions also play a big role in their purchasing decisions. Sites like Facebook, Instagram and TikTok have the most pull with the parents we surveyed.

How marketers can leverage back-to-school shopping data 

Parents are shopping earlier, which means marketers need to start back-to-school campaigns earlier too. And due to inflation and rising costs, 80% of parents are looking for deals and ways to use or redeem loyalty points, so make sure to keep pricing top of mind as you launch your campaigns. 

Want to learn more about what to expect for the 2024 back-to-school shopping season? Dive into the data and download a copy of the report today.