Member Report: How Inflation, AI Are Impacting Back-to-School Shopping
The back-to-school shopping season is here, and parents who need new clothes, electronics, and sports equipment are feeling the pinch of inflation.
Epsilon Pulse surveyed 1,234 parents of grade school and college students in May about their purchasing plans, and 80% said they expected to spend more this year due to inflation, with 54% saying rising costs were driving them over budget compared to previous years. That’s not surprising given inflation reached a new three-year high in May.
That financial stress means that shoppers are looking for bargains, often with the help of new technology. The survey found that 46% of parents were using ChatGPT or AI to help them with their shopping, primarily to compare prices and search for deals and discounts.
Retailers and brands need to make sure to tailor their content to ensure that it is popping up in AI-powered searches. Legacy tactics are also still important, as 59% of respondents said their ability to earn rewards from retailer loyalty programs informed their choices on where to shop.
The report breaks down when the shoppers are making their back-to-school trips, what channels they’re shopping, and how they’re trying to save money. It also offers key takeaways for companies on how to reach shoppers throughout the path to purchase with the right message and the right time.
“Retailers will need to take a truly individualized approach, with personalized offers and messaging complementing the overall shopping experience for parents — no matter if executed in-store, online or both,” Epsilon vice president of growth strategy Heather Campain said in the report. “First-party and third-party data will be the key for retailers in unlocking the wallet share with this season’s rush to get kids ready for their first days at scale.”
Read the full report here.
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