SANTA ANA, Calif. — Parents are shelling out big bucks for back-to-school shopping with the school year around the corner.
As inflation rises to a 40-year-high, parents are ponying up an estimated $660 this back-to-school shopping season, an 8% increase from the previous year, global consulting firm Deloitte reported.
“Concerns of inflation and a [looming] recession are not stopping parents from preparing for the upcoming school year,” Summer Taylor, managing director at Deloitte Orange County, told Spectrum News.
The mid and back half of the summer season is often the second largest shopping time for parents, behind the Christmas holiday. This year, the back-to-school shopping season is estimated to bring in $34.4 billion, a 24% increase from the pre-coronavirus pandemic. There are about 52 million students enrolled in kindergarten through 12th grade this upcoming school year.
The back-to-school survey, released earlier this month, comes as many parents bring their children back to school worried about the ongoing pandemic, historically high inflation, and economic uncertainty.
Deloitte surveyed 1,200 parents with at least one kindergarten to 12th grade child. Of the 1,200, about 400 of the parents lived in the Los Angeles, Long Beach and Anaheim metropolitan areas, Taylor said.
Nationally, more than half (57%) of parents surveyed said they are concerned about inflation in back-to-school products. More than six out of ten parents believe that companies are profiting from inflation, and nearly eight out of ten parents would choose generic products over brand names if the latter’s prices are too high.
Most surveyed parents said they plan to spend more on clothing and accessories, school supplies, and COVID-related products. While nationally, parents are spending less on technology, in Los Angeles, parents are spending more on computers and tech-related items.
“One of the trends we’re seeing in LA, is parents are increasing their spending on technology more than the rest of country,” Taylor said. “Parents want new tech sooner and faster.”
Sustainable and mental health are also top of mind for many parents as they bring their children back to school.
More than half of parents choose to buy sustainable back-to-school products whenever possible, and about three out of ten parents would purchase a used or refurbished product rather than a brand name new one.
Regarding mental health, half of those surveyed said they are concerned about their children’s mentality, and nearly four of ten are buying products to address their child’s mental health needs.
“We’re seeing them buy smart devices that keep track of their fitness as well as meditation and yoga for calming and other stress-relieving activities,” Taylor said.
Taylor added that more parents are shopping online for their products. More than 56% are shopping at online-only retailers, a 7% increase from the previous year. Meanwhile, 81% of parents also shop at mass merchant stores, a 7% increase from the prior year but down 7% from 2019, pre-pandemic.
And while economic uncertainty hovers over parents like dark clouds, with more than half expecting the economy to weaken in the next six months, Taylor said parents are also spending more because most are still working.
“Unemployment is at a record low, and people continue to have jobs,” she said. “Another thing helping parents as they prepare for their children to go back to school is that gas prices have also come down, giving parents some reprieve and help with spending as well.”