Savvy shoppers are bypassing increased costs by recycling school items and opting for lower-priced brands during back-to-school season.
In the 2022 back-to-school shopping season, retailers have been faced with a cautious consumer base due to economic uncertainty and price increases. According to a recent survey, about eight in ten shoppers anticipate spending more this year than last, with 37% attributing this trend to price increases and 34% stocking up on supplies for the year [1].
One retailer that has stood out in this challenging market is Target. More than half (56%) of back-to-school shoppers have expressed concerns about affording the usual supplies due to tariff-driven price increases, but 91% expect higher prices to affect their purchasing behaviors this season [1]. In response, Target has implemented a series of promotional events and strategies to attract and retain these cautious consumers.
Target's promotional events and strategies included personalization and customization events, exclusive discounts for specific groups, exclusive giveaways, dual campaigns, and participation in state tax-free weekends [1][2]. The personalization stations in about 500 stores allowed shoppers to customize school and dorm essentials, creating an engaging retail experience [1]. Target also offered one-time 20% off storewide discounts through its Target Circle membership for verified teachers and college students [1][2].
To enhance shopper excitement and brand connection, Target complemented these discounts with giveaways such as shoelace kits, school-themed patches, and monogrammed bath wraps [1]. The retailer launched two distinct back-to-school campaigns—one focused on college students and another aimed at parents of younger children—to tailor marketing messages and promotions more effectively [2].
Target also participated in state tax holidays, encouraging shoppers to capitalize on tax savings alongside promotions [1]. These events reflected broader trends in the 2022 back-to-school season, including early shopping starts due to price rise concerns and economic uncertainty [3][4].
The focus on apparel, school supplies, electronics, and dorm essentials led retailers to innovate with both in-store experiences and targeted digital marketing [3][4]. Other major retailers like Walmart and Amazon also ran significant promotional campaigns, but Target's multifaceted approach stood out for its breadth and personalization focus [4].
As shoppers look to cope with price hikes, they plan to buy items on sale (38%), purchase items from cheaper brands (29%), comparison shop (29%), and reuse supplies (28%) [1]. To help in this search, a fifth of back-to-school shoppers expect to use AI in their search for markdowns [1].
Families anticipate spending $378 on each child's back-to-school items, a 21.5% increase from the $311 they spent last year [1]. To accommodate this increased spending, discount stores are becoming increasingly popular, with nearly two-thirds (62%) of shoppers planning to buy their back-to-school items from these stores [1].
After the summer sales, major retailers like Walmart and Target introduced additional back-to-school discounts and features [1]. Dollar stores or variety retailers are the third most popular choice for back-to-school shopping, with 42% of shoppers planning to purchase from these stores [1].
Nearly half (46%) of survey respondents plan to take advantage of Target Circle Week, Amazon Prime Day, Walmart Deals, or Labor Day sales [1]. As the back-to-school season continues, it is clear that retailers like Target are adapting their strategies to meet the needs of price-conscious consumers, offering expanded inventory, convenience, and special promotions to entice cautious shoppers.
References:
[1] Coresight Research. (2022). Back-to-School Spending Projected to Rise 3.3% Year-Over-Year to $33.3 Billion. [online] Available at: https://www.coresight.com/news/back-to-school-spending-projected-to-rise-3-3-year-over-year-to-33-3-billion/
[2] Target. (2022). Target's Back-to-School Promotions and Strategies. [online] Available at: https://corporate.target.com/article/2022/07/targets-back-to-school-promotions-and-strategies
[3] NRF. (2022). Back-to-School Spending Expected to Increase. [online] Available at: https://nrf.com/media/press-releases/nrf-back-school-spending-expected-increase
[4] Retail Dive. (2022). Target's back-to-school promotions and strategies. [online] Available at: https://www.retaildive.com/news/targets-back-to-school-promotions-and-strategies/616270/
- Inflation, driven by tariffs, has led some shoppers to worry about affording usual supplies during the back-to-school season, but Target has responded with promotional events and strategies to cater to these cautious consumers.
- To attract and retain shoppers, Target has implemented various promotional tactics, including personalization and customization events, exclusive deals for specific groups, giveaways, dual campaigns, and participation in state tax-free weekends.
- As consumers grapple with price increases, they are turning to platforms like Target Circle, Walmart Deals, and Amazon Prime Day for deals and discounts in their lifestyle, home-and-garden, shopping, and back-to-school essentials.
- As the back-to-school season progresses, AI adoption is expected to grow among shoppers, who plan to utilize the technology in their search for markdowns and savings.
