Back-to-school spending expected to hit record highs in 2024, Walmart reports

On July 15, 2024, Walmart Connect released its annual Back-to-Class Insights Guide, revealing key trends and consumer behaviors expected to shape the upcoming back-to-school shopping season. The report, based on surveys of Walmart customers and internal data, highlights significant shifts in spending patterns, shopping preferences, and economic concerns that will impact retailers and brands in the coming months.

According to the guide, back-to-school and back-to-college spending is projected to reach unprecedented levels in 2024. The National Retail Federation estimates that back-to-school spending will hit $41 billion, while back-to-college expenditures are expected to soar to $94 billion. These figures represent a substantial increase from previous years, indicating a robust market despite ongoing economic uncertainties.

Walmart's internal data shows that 40% of surveyed customers plan to spend more on standard school supplies this year compared to 2023, while 50% anticipate maintaining the same spending level. This uptick in projected spending comes as a surprise, given the persistent economic concerns among consumers. The report reveals that 78% of surveyed Walmart customers express varying degrees of worry about the affordability of purchasing all necessary back-to-class products.

The economic landscape appears to be influencing where and how consumers shop for back-to-school items. Walmart's low prices and affordability are cited as key factors driving customer loyalty, with 76% of surveyed shoppers indicating they will choose Walmart for their back-to-class needs specifically due to these attributes. This trend underscores the importance of value-driven retail strategies in capturing market share during the crucial back-to-school season.

Interestingly, the report highlights a significant shift towards omnichannel shopping behaviors. While over 80% of surveyed customers who plan to shop at Walmart during the 2024 back-to-class season intend to visit a physical store, there is also a strong inclination towards online research and purchasing. Approximately 57% of customers plan to research products online, and 56% expect to make purchases through digital channels. This dual approach to shopping emphasizes the need for retailers to provide seamless experiences across both physical and digital touchpoints.

The timing of back-to-school shopping has also evolved, with many consumers starting their preparations earlier than in previous years. Last year's data showed that 28% of Walmart customers began planning and researching before July, while 35% focused on these activities during July. The actual purchasing peaked in the first half of August, with 35% of shoppers completing their back-to-class buying during this period. This extended shopping season presents opportunities for retailers to engage customers over a longer timeframe, potentially increasing overall sales volumes.

Product categories seeing the most interest from back-to-class shoppers include school supplies, school accessories, and fashion items. The report notes that when it comes to children's clothing, Walmart customers prioritize product attributes over brand names. This insight is supported by search data showing that only one or two of the top ten search keywords for apparel during the back-to-class season are branded terms.

The influence of children on purchase decisions is substantial, with 47% of surveyed Walmart customers reporting that their children were extremely or very involved in shopping for school supplies. Additionally, 44% stated that requests from their children were the most influential factor in their purchasing choices. This data underscores the importance of marketing strategies that appeal to both parents and students.

Consumer reviews and ratings play a crucial role in the decision-making process for back-to-school shoppers. An overwhelming 80% of surveyed Walmart customers indicated that consumer reviews and ratings assist them while shopping for back-to-class products and inspire their purchases. This statistic highlights the growing importance of user-generated content in driving sales and building trust with consumers.

The report also sheds light on the increasing relevance of Walmart Marketplace for back-to-class shoppers. Nearly half of the surveyed customers expressed likelihood in purchasing back-to-class items through the Marketplace platform, which offers an expanded selection of brands and products beyond Walmart's traditional offerings.

Advertising appears to be a significant influencer in the back-to-class shopping journey. The guide reports that 69% of surveyed Walmart customers said advertising on a retailer's website or app helps them discover new brands and products. This statistic underscores the potential impact of well-targeted digital advertising campaigns during the back-to-school season.

Social media and digital platforms are playing an increasingly important role in shaping shopping decisions, particularly when it comes to meal planning and snack ideas for school lunches. The report indicates that 52% of surveyed Walmart customers use social media to discover new school snacks or meal ideas, while 38% turn to retailers for such inspiration.

Walmart's own promotional events have shown significant impact on back-to-class shopping. Last year's July 2023 Deal Event drove substantial increases in units sold compared to the Q2 average across various categories. Notable spikes were observed in stationery (+120%), furniture (+34%), and home management (+19%) during this promotional period.

As the back-to-school season approaches, retailers and brands are advised to take note of these evolving consumer trends and adjust their strategies accordingly. The extended shopping timeline, shift towards omnichannel experiences, and increasing influence of digital content and advertising all present unique opportunities and challenges for businesses looking to capitalize on this lucrative shopping period.

Key takeaways from Walmart's 2024 Back-to-Class Insights Guide

Back-to-school spending projected to reach $41 billion, with back-to-college at $94 billion

40% of Walmart customers plan to spend more on school supplies compared to 2023

78% of customers express concerns about the affordability of back-to-class products

76% choose Walmart for back-to-class shopping due to low prices and affordability

57% of customers plan to research products online, while 56% expect to make online purchases

47% of parents report high involvement of children in school supply shopping decisions

80% of customers rely on consumer reviews and ratings for back-to-class purchase decisions

Nearly 50% of customers likely to purchase back-to-class items on Walmart Marketplace

69% of customers say retailer website/app advertising helps discover new brands and products

Social media (52%) and retailers (38%) are top sources for school snack and meal ideas