STAMFORD, Conn.—As back-to-school shopping begins, 59% of parents and 40% of college students are reporting they feel extremely confident or very confident in their own financial situation, which will likely translate into higher retail sales, a new report indicates.
According to a Synchrony Financial study, sales are expected to increase 3.2% to 3.7% during the third quarter of the year.
Synchrony's report, based on a survey of 1,850 parents and college students, analyzed where consumers would spend their money.
“A third of families expect to spend more on clothing/shoes and electronics this year, and many report longer supply lists and more technology needs,” noted Bill Hardekopf, CEO at LowCards.com, Birmingham, Ala. “In fact, 39% of K-12 parents said their supply lists have increased, and more than half of the respondents would rather pay a fee if the school would provide the supplies.”
Other key findings include:
- More than half of parents with K-12 students said they are likely to set a budget, and 39% of those parents said they are likely to set a per-child budget.
- Most parents (51%) and college students (67%) plan to wait until Aug. 1 to shop.
- Sixty-five percent of parents and 61% of college students will make most of their purchases in the store. Forty percent of college students will buy their items locally, and then transport them to school.
- While people are shopping in store, they are finding deals online. Sixty-two percent of parents (up from 56% last year) and 70% of college students (up from 68%) search online before shopping.
- Forty percent of parents and half of college students will comparison shop with their phone.
- Parents will make 35% of their purchases online, and 8% will use their phone, while 39% of college students will buy online, and 10% will use their phone.