Deloitte's latest back-to-school survey suggests U.S. parents are becoming more cautious with school-related spending as higher prices continue to pressure household budgets. The survey, conducted from May 22 to May 29 among 1,207 parents with at least one child entering grades K-12 in the fall, found that families earning more than $100,000 a year expect to spend less this season. The pullback appears more pronounced among households making more than $200,000, which said they plan to cut back-to-school spending by 20% from 2025.
This shift could carry implications for Walmart NASDAQ:WMT, a major U.S. retailer, and Target NYSE:TGT, a major U.S. big-box retailer, as both companies rely on the back-to-school season to support summer sales and are using discounts to attract cautious shoppers. Kohl's NYSE:KSS, a U.S. retailer, highlighted thousands of back-to-school products priced under $25, while Dollar General NYSE:DG, a discount retailer, said it would offer more than 70 items for $1 or less. Walmart and Sam's Club also announced lower prices on thousands of items, suggesting retailers may be leaning harder into promotions as families search for value.
Deloitte expects back-to-school spending to fall to $557 per child from $570 last year, equal to roughly a 6% decline after adjusting for inflation. Technology spending, especially on laptops and smartphones, is expected to see the steepest drop at 16%, as parents shift more dollars toward clothing, accessories, and classroom supplies. For investors, the survey may point to a broader value-seeking mindset, with families switching brands, buying in bulk, using cash-back websites, and looking for lower-price retailers to stretch every dollar.