Inflationary pressures create need for more marketing promotions.

 

Rising prices and consumers shopping for more immediate needs has disrupted early back-to-school shopping season performance in the US.

 

And as inflationary pressures impact the Australian BTS season, there’s also a clear trend in the US where BTS shoppers are holding off waiting for sales.

 

“Consumers are balancing their return to school, work, and social activities, while retaining some pandemic-related behaviours, and prioritising their purchases accordingly,” Marshal Cohen, chief retail industry advisor for NPD, said.

 

“Consumers have been more focused on travel and social activities this summer, pushing the 2022 back-to-school shopping peak later. This is another example of here-and-now shopping leading to shallower retail spending peaks, with sales realised over a longer stretch of time,” he said.

 

Portable beverageware and colouring and art supply categories were among the fastest growing school-related categories in the early part of this season, demonstrating some attention being paid to school needs. 

 

“Consumers are still spending on summer fun, and the back-to-school focus has yet to kick into high gear – but it will,” Cohen said. “While retailers have clearly begun to use promotions to drive more sales, marketers need to continue entice the acceleration of back-to-school purchasing in general, and create some urgency for apparel, technology, and other high-volume stragglers.”