Again-to-school spending persists, PwC survey says

Households aren’t holding again on back-to-school spending this yr, regardless of rising financial stress, in line with a brand new PwC client survey.

Almost three-quarters of back-to-school consumers anticipate to spend the identical quantity or extra this yr than they did in 2024, in line with PwC’s survey of almost 2,000 mother and father. In actual fact, greater than 1 in 3 mother and father anticipate spending greater than they did final yr.

“A number of it’s requirements. It is individuals understanding that they’ll should get this particular e-book, or these particular provides for college or they require expertise for his or her children,” stated Kelly Pedersen, PwC’s U.S. retail chief.

The outcomes point out a value-oriented client, Pedersen stated, however on the identical time, back-to-school spending is insulated as a result of “that is simply vital spend yearly.”

The outcomes come as customers grapple with an unsure financial atmosphere as a result of international commerce dynamics. Whereas client confidence for Might was stronger than anticipated, spending for the month pulled again sharply.

The non permanent pauses on a few of President Donald Trump‘s tariffs have been considered as a optimistic indicator for customers, though the long-term path ahead for tariffs stays unclear, particularly as some retailers have stated they are going to elevate costs.

Among the many back-to-school purchasing locations, Walmart and Goal stated they plan to hike some costs, whereas Greatest Purchase is among the many retailers that stated it has already raised some costs.

“A number of the typical customers within the U.S. form of really feel this cloud hanging above of, when are the tariffs going to hit, and what are these going to do to costs,” Pedersen stated.

He stated worth will probably be vital shifting ahead, as he has seen customers shifting towards extra low cost retailers over the previous couple of months.

Certainly, shopping for objects solely on low cost and reusing objects from earlier years are among the many high methods customers plan on saving throughout back-to-school season, in line with the survey.

For many who are slicing again on back-to-school spending, expertise and clothes are the highest two classes the place they’re planning to tug again, in line with PwC, whereas necessities like books and college provides are extra insulated.

On back-to-school expertise, 25% of fogeys plan to spend greater than $500, whereas 42% anticipate to pay below $50.

Whereas the quantity of back-to-school spending has stayed comparatively fixed general, mother and father are altering the methods they store.

Synthetic intelligence particularly is impacting how mother and father deal with the back-to-school season. One in 5 consumers plan to make use of AI instruments to search out on-line offers, in line with the survey.

Relating to bodily retail, Gen Z is main the way in which. Gen Z mother and father surveyed have been extra seemingly than millennials or Gen X mother and father to buy solely in retailer, suggesting the youthful era may very well be contributing to brick-and-mortar resilience, PwC stated.