US back-to-school spending expected to be flat in ’24

US back-to-school spending is expected to be flat or lower this year, with shoppers cutting back on expensive electronics, according to Deloitte. Spending is projected at $31.30 billion, averaging $586 per K-12 student, down from $31.90 billion, or $597 per student, in 2023.

Parents are seeking discounts on essentials like sneakers, computers, clothing, and backpacks. Retailers such as Walmart and Target started their sales in early July, ahead of Amazon’s Prime Day. Middle-income families are focusing on value and private-label products, noted Stephen Rogers, managing director of Deloitte Insights Consumer Industry Center.

About 67 per cent of parents may switch brands if their preferred options are too expensive. Spending on clothing and school supplies is expected to be $12.60 billion, similar to 2023, while technology product spending is projected to drop 11 per cent to $8.6 billion. Middle-income families are expected to reduce spending by 9 per cent, low-income families by 4 per cent, and higher-income families to increase spending by 5 per cent to $721 per child, up from $689 last year.

Attribution: Reuters citing Deloitte