From Prime Day to School Day | Insights for Retail Marketers

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As the summer heat climbs past the 100-degree mark, back-to-school shopping is heating up too. And, the forecast for consumer spending trends is looking cloudy. 

With rising costs and shifting priorities, this year’s back-to-school season poses unique challenges for retailers and consumers alike.

Learnings from Amazon Prime Day

As always, Amazon Prime Day is a gold mine for retailers in understanding consumer sentiment and trends ahead of peak spending seasons like back to school and holidays. 

So, what did we learn from Amazon Prime Day 2024?

We learned that consumers are planning ahead, buying with purpose in mind, and avoiding impulse buys. In other words, consumers are being more strategic with their money as the cost of school supplies continues to increase YoY.

In fact, according to the Bureau of Labor Statistics’ Consumer Price Index, the cost of school supplies has increased by 24.5% since 2020.

24.5%.We had to read that twice, too. 

Due to this stark increase in the cost of supplies, parents have no choice but to make their money go further as their pockets get shallower. 

As consumers aim to spend less on overall back-to-school purchases, the importance of deals and sales has remained high, with roughly 25% of all back-to-school shoppers purchasing school-related items during this year’s Amazon Prime Day. 

Retailers May [Not] be Saved by the Bell This Year

While forecasts vary for back-to-school spending, with eMarketer projecting an almost flat 3.2% growth YoY and the National Retail Federation projecting a 7% decrease YoY, one thing is clear: consumer spending will be conservative this year.

So, what does this mean for retailers?

Consumers are placing a stronger emphasis on value over brand loyalty.

According to Deloitte, this year, shoppers are favoring retailers that provide value and convenience, with 77% choosing mass merchants and 65% opting for online retailers. 

In their quest for deals, parents are planning to shop at an average of 4.7 different retail formats, an increase from 3.9 in 2023, even if it means sacrificing brand loyalty.

How Can Retailers Respond?

We sat down with our colleague…okay, okay… We slacked our colleague, Stephanie Groudle, Senior Account Director at Adlucent, to understand how retailers can respond to these projections and emerging trends. 

Stephanie stressed the importance of strategic promotions and flexibility in budget allocation, saying, “With consumers focusing on value, retailers have found and will continue to find success by leaning into strategic promotions for seasonal categories to maximize demand and acquire new customers while re-engaging returning customers.”

She continued advising retailers, “Flexibility in budget allocation is also key. Retailers should be prepared to adjust their marketing and inventory strategies dynamically, ensuring they can meet consumer needs as they evolve throughout the season.”

Lastly, Stephanie shared, “To maintain profitability, it is crucial [for retailers] to conduct thorough product-level margin analysis and prioritize high-margin, high-demand items within their marketing channels. This approach allows retailers to offer competitive pricing while safeguarding their bottom line.”

Retailers Need to Match Consumer Energy

In a year marked by strategic spending, retailers need to be just as thoughtful in their approach. Remember to focus on value, be flexible, and prioritize convenience to ensure you meet parents where they are this back-to-school season.

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Eden Pierson

Eden is a content manager with a wide range of experience in the marketing space. From B2B advertising, branding, and retail marketing, she is passionate about curating content that resonates with target audiences.