Back to School means Back to the Swing of Things

The end of summer marks the beginning of fall and, most importantly, the start of the school season. Back-to-School means reviving routines that were interrupted during the summer holiday and trying to get the kids back to the swing of things. Back-to-School also means that parents and students are getting ready for the academic year by starting their back-to-school shopping.

Retail Spend in Canada

Back-to-school shopping is one of the largest retail seasons of the year, with a market of 31.3 billion dollars in the U.S. this year alone.

Despite a recent report from Statistics Canada stating that Canadian retail sales decreased 0.8% to $66 billion in May, this has not stopped shoppers from spending on what’s needed for their back-to-school lists this year. In fact, according to a report from the Retail Council of Canada, 86% of shoppers say their budgets have remained the same – if not increased – compared to last year’s back-to-school budgets. And although budgets for back-to-school shopping has either increased or remained the same, this doesn’t mean shoppers haven’t thrown inflation worries away for the season. The RCC notes a “cautious yet consistent approach to Back-To-School shopping amidst evolving economic conditions.”

Back-to-School Consumer Behaviour this Fall

Key Findings on Back-to-School trends in retail this year, reported from the RCC:

• The number of people shopping a week before the school year starts has decreased from 15% in 2023, to only 5% this year.

• 37% of shoppers plan on making their purchases 2-4 weeks before school starts, up from 30% in 2023.

• 72% of shoppers prefer in-store shopping for most of their back-to-school purchases, with 15% preferring the retailer’s store website, and 9% preferring online sellers such as Amazon, Etsy, Facebook marketplace, etc.  

• Almost 50% of shoppers use flyers (all flyer types: both paper and digital) as their top sources of inspiration for their back-to-school shopping; followed by products seen in store (35%), with recommendations from friends and family, retailer websites, and social media closely following suite.

What this means for your business

Even though back-to-school budgets remain the same – if not more – this year compared to last, consumer spend is still quite cautious. According to Flipp’s Back-to-School Shopping Insights, 95% of shoppers will be looking for savings on items this upcoming academic year. In addition, 80% of shoppers will be making their purchases across a variety of channels; this includes mass merchandisers, malls, online platforms, and grocery stores – making back-to-school shopping a multi-channel journey. This, coupled with the fact that more and more are starting their shopping earlier, and the fact that flyers are the main source of inspiration for shopping lists, means that families are prioritizing the basics and avoiding discretionary purchases this year. Families are planning ahead and budgeting for essentials, evading the unnecessary spend that is a result of the sense of urgency that comes from last minute shopping.  

So, the market spend for the back-to-school season is still here and just as strong as last year, retailers just need to adapt their tactics to evolving consumer behaviours.

How Your Business Can Prepare

There are several ways your business can adapt to back-to-school trends this year. This includes:

Promoting special deals on multiple channels.

With access to all flyer types (physical and digital) shoppers can easily browse different sites to see what stores are offering the best deals on the same items. Retailers should utilize all platforms – from digital ads, to email marketing, and mailers – to promote products. And within these platforms, retailers should offer competitive deals and promotions to incentivize consumers to opt for your business and not the other.

Emphasizing Visibility and Accessibility.

Make sure in-store displays show back-to-school items front and centre. Engaging displays will draw customers in to test out the product, fall in love with the item, and bring it home. For e-commerce, dedicated landing pages and banners for back-to-school items are just as effective for online shoppers.

Offering a World of Payments™.

With Canada hosting over 1 million international students in 2023, it’s important that businesses especially cater to this market this season. OTT Pay’s Smart POS Terminal and e-Commerce plugins give your store the ability to accept international e-wallets from around the world. Make your business as accessible as possible and allow students to pay the way they’re used to back home.