According to Zoe Mills, lead retail analyst at GlobalData, the key to success in the 2024 back-to-school market will be retailers’ ability to attract “price-conscious” shoppers.
Mills explained that consumers are increasingly looking for low-cost alternatives as they cut back where possible, aiming to provide all the necessary items without breaking the bank.
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In 2023, the proportion of consumers who actively cut back on back-to-school spending to save money rose by 5 percentage points to 73%. Despite inflation slowing in 2024, GlobalData expects this trend of reduced spending to continue.
Mills highlighted Marks & Spencer (M&S) as a likely winner this year, saying: “Marks & Spencer has reiterated its fourth consecutive year of price locks on its school uniform and as shoppers cut back where possible, Marks & Spencer’s clear messaging and reputation for quality should ensure it is a winner this year.”
She believes it will be a battle on price once again this year, noting that “price locks” have proved enticing before and retaining this message will be a way to ensure destination appeal.
However, Mills warns that price should not come at the expense of quality, especially when it comes to school uniforms.
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By GlobalDataBack-to-school keyword dwindles in popularity
GlobalData’s apparel company filings show a significant drop in mentions of ‘back-to-school’, from peaking at 147 mentions in Q3 2023 to just 6 in Q3 2024.
The data reflects how inflation continues to weigh consumers’ pockets by limiting them to prioritise purchases.
Mills shared: “Parents understand the stresses placed on uniforms, and replacing uniforms frequently at a low price can cost more than spending a little more initially on pieces that last.”
Her advice to retailers is to strike a balance by having entry-level ranges in school uniforms and other back-to-school categories which will ensure retailers can compete with discounters without compromising quality.
Earlier in August, the latest CNBC/NRF Retail Monitor released by the National Retail Federation (NRF) reported that the US experienced retail sales growth in July thanks to back-to-school shopping and retailers’ special promotional events.
