(Bruce Winder is a retail analyst, advisor and speaker with 30+ years experience in big retail,
consulting and teaching)
As the new school year is here, many families are finding the excitement of a fresh start is
overshadowed by the costly burden of back-to-school shopping. Parents in Canada are faced
with a question: how can they navigate this financial challenge without sacrificing their children’s
needs and educational experience?
Back-to-school spending is the second-largest annual retail expenditure for households, trailing only holiday shopping. According to a 2024 report from Deloitte, consumers spend a yearly average of almost $600 per student on back-to-school supplies alone.
However, the back-to-school shopping landscape – and the retail landscape as a whole – has been shifting. While Canadians may feel like their social media feeds are bombarded with “back-to-school hauls,” the reality is more and more families are shrinking their back-to-school budgets and opting for more conscious spending. Deloitte reported a decrease in school spending from past years – from $661 in 2022, to $597 in 2023 and down to an average of $586 per student this year.
It’s fair to say that the cost-of-living crisis has extended well beyond housing, gas and groceries to also include clothing and everyday essentials. In this difficult economic climate, consumer priorities are shifting as families become more mindful of where they’re spending their hard-earned cash – and more importantly – how they can save. Retail trends have been quick to adapt to these changes.
Previously, younger generations gravitated towards brand names and celebrity-endorsed products that flooded their social media feeds. Now, brand loyalty is waning as families prioritize cost savings and embrace discount and secondhand shopping.
In 2024, there is a growing preference for cheaper, unbranded or lesser-known alternatives to
popular brand-name products. Approximately, 67 per cent of surveyed parents will shift brands if
their preferred brand is too expensive, and 50 per cent will shop for private labels over name
brands.
Online shopping, social media and apps have become viable solutions for families looking to
stretch their dollars further. One in three parents plan on using social media sites to assist in
their back-to-school shopping.
Even more so, online thrifting sites such as Facebook Marketplace and discount shopping apps
have become increasingly popular because of the wide range of choices offered – many of
which are identical in origin and quality to the products found in physical stores without the hefty
supply chain mark-ups that inflate the costs of products.
Convenience is another major factor. Parents want to save time and money through one-stop
shopping and easy returns offered by online marketplaces. For back-to-school supplies, they’re
increasingly turning to direct-from-factory marketplaces like Temu, where they can find a wide
selection of cost-effective products at prices significantly lower than other retailers.
Not participating in these retail traditions is easier said than done. Equally, we can’t ignore the
positive benefits associated with them. Studies have consistently demonstrated that having
school supplies of their own can improve students’ grades, creativity, attitudes toward learning,
behaviour, peer relationships and self-image.
In today’s evolving retail landscape, parents should feel empowered to balance fiscal
responsibility with purchasing the products their children need and want to start the new school
year off strong. With smart shopping choices and an openness to trying new platforms in an
ever-changing retail environment, Canadian families have the power to successfully navigate
the economic challenges facing them today while provide the best for their family without
breaking the bank.
