The Ankura Back-to-School Shopping Report 2024
Ankura's Performance Improvement team surveyed more than 1,000 U.S. consumers who are planning their back-to-school (BTS) shopping, delivering critical insights into consumer sentiment amidst ongoing economic uncertainty.
The survey highlights a multitude of factors influencing consumer sentiment right now, clearly indicating that inflation remains a top concern for shoppers and that broader U.S. economic indicators give credence to shoppers' perspectives. The landscape of BTS shopping in 2024 is characterized by economic uncertainty and consumer caution, influenced heavily by factors such as inflation and rising living costs.
This comprehensive research explores the complex interplay of consumer sentiment regarding the economy, personal financial circumstances, and the impact on BTS shopping behaviors. Key findings from the survey indicate:
- A notable apprehension regarding inflation and its effects on purchasing power is evident. Nearly 75% of shoppers say that credit card debt and personal financial obligations will impact their budgeting decisions this BTS shopping season.
- There is a significant shift towards value-driven shopping, with cost being paramount for shoppers across all categories. Price sensitivity is greatly influencing shopper's desires, who indicate an overwhelming preference for big box retailers like Walmart, and Target, as well as Amazon, due to their competitive pricing.
- Driven by a desire for convenience and cost-savings, more shoppers are turning to online shopping channels. The competitive advantages of online shopping include clear visibility into inventory being "in stock" or "available to ship," free shipping options, and the ease of returning unwanted items.
- Divergent outlooks on personal financial situations will influence spending intentions this BTS season. Thirty-seven percent of respondents feel optimistic about their own economic situation. Conversely, only 29% of those who feel their personal financial situation is about the same as last year, and just 21% of those who feel it is worse, expect improvement in the next year.
- The current consumer sentiment and financial expectations underscore the need for retailers to nurture loyalty among existing customers to bolster sales. Consumers currently sitting on the sidelines are not expected to convert to spenders anytime soon and with no immediate signs of a positive shift in consumer spending behavior, retailers should continue supporting their most loyal customers to sustain sales.
The 2024 BTS shopping season presents a multifaceted picture of economic resilience and consumer adaptation amidst challenging economic conditions. While inflation and cost of living concerns loom large, consumers exhibit a mix of caution and optimism in their financial outlooks. Retailers navigating this landscape must prioritize competitive pricing, promotional strategies, and omnichannel engagement to resonate with savvy shoppers. By understanding these trends and insights, businesses can effectively tailor their offerings and marketing efforts to meet the evolving needs of BTS consumers in 2024 and beyond.
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