The 2024 back to school retail winners will be determined by their ability to appeal to a price-conscious shoppers, a retail analyst has said.
While inflation levels are decelerating, there is a continued focus on cutting costs among the parents shopping for back to school items in the UK.
Zoe Mills, Lead Retail Analyst at GlobalData, a leading data and analytics company, states, "The 2024 back to school retail winners will be determined by their ability to appeal to a price-conscious shoppers. Consumers are cutting back where possible, seeking low-cost alternatives to ensure they can provide all the items required.
"The proportion of consumers who stated they actively cut back on back to school spending to save money increased by 5ppts to 73 per cent in 2023. GlobalData expects the number of consumers reducing spend to rise further despite inflation rates slowing in 2024.
“Marks & Spencer has reiterated its fourth consecutive year of price locks on its school uniform and as shoppers cut back where possible, Marks & Spencer’s clear messaging and reputation for quality should ensure it is a winner this year.
“Among the big four grocers, GlobalData anticipates Tesco will have a successful back to school period, stealing shoppers from ASDA amid the latter’s wider struggles in the food & grocery sector. Last year, Tesco retained the top spot among the grocers for range, quality and display for back to school products, while ASDA remained the highest rated for price.
"ASDA has been the leader for uniform shopping, but Tesco is hot on its heels, making notable purchaser share gains in 2023, posing a significant threat to the value grocer. Tesco’s one-year guarantee on uniforms increased consumer confidence in its quality - the top purchase driver for uniforms.
“It will be a battle on price once again this year. Price locks have proved enticing before, and retaining this message will be a way to ensure destination appeal. However, price cannot come at the expense of quality, particularly in uniform. Parents understand the stresses placed on uniforms, and replacing uniforms frequently at a low price can cost more than spending a little more initially on pieces that last.
"Retailers must get the balance right here. Having entry-level ranges in uniform and other back to school categories will ensure retailers can compete with discounters without compromising quality.”
