|By PR Newswire||
|July 30, 2014 08:00 AM EDT||
NEW YORK, July 30, 2014 /PRNewswire/ -- Traditionally one of the most anticipated trips of the year for parents and children alike, back-to-school shopping may no longer be the experience it once was among U.S households, according to Deloitte's Back-to-School and Back-to-College surveys, released today.
Parents and their children in grades K-12 will spend a combined $543 on back-to-school items, and double that, at $1,223, on college spending. Parents alone expect to spend 13 percent less than last year according to both surveys. Those with students in college expect their child's contributions to remain relatively steady at $436 as compared with 2013, whereas students in grades K-12 are expected to contribute a smaller amount, $173, to the family budget.
"While the uneven economic recovery is still impacting consumers' spending intentions, it may not be the factor it was in recent years," said Alison Paul, vice chairman, Deloitte LLP and Retail & Distribution practice leader. "There appear to be other forces at play that are diminishing the significance of back-to-school as a limited-time-only shopping event. Schools, for example, frequently furnish supply lists, and pencils and notebooks are becoming more discretionary as many students rely on digital screens to complete homework assignments; additionally, 24/7 online convenience allows parents – and students – to shop any time, not just during the traditional mid- to late-summer back-to-school period. Consumers are more precise about what they buy, and may no longer feel the need to stock up as they did in the days before the Internet."
More than two-thirds of respondents (68 percent) shopping for children in grades K-12 indicate their back-to-school purchases will be driven by the school's recommended product list, rather than their child's requests. Additionally, they may be delaying some of their purchases until after school begins, as more than one-quarter (26 percent) of parents expect to complete their shopping after the start of the school year.
In terms of where consumers plan to shop, "online sites" moved up to the No.2 shopping destination, tied with "office supply/technology stores," and behind "discount/value department stores" for the first time in the survey's history. The number of shoppers who prefer to purchase from retailers offering the option to buy online and pick up in the store increased to 40 percent from 33 percent last year. Nearly six in 10 (57 percent) say they plan to conduct research online before buying in the physical store.
"Rather than thinking solely in terms of e-commerce, retailers need to consider how consumers' digital interactions — not exclusively purchases — influence what they do and don't buy in the brick-and-mortar store," continued Paul. "Retailers should look at their online and mobile channels as a greater opportunity to drive traffic and revenue at the physical store, rather than viewing it as merely a point of purchase, where it actually tends to deliver lower sales than the physical store as a whole."
In addition to these elements shaping back-to-school shopping, consumers still have the economy in mind. Nearly three-quarters (73 percent) of respondents believe the economy is recovering, but continue to exercise some caution. While high food prices once again top their list of economic concerns that could impact their spending plans, other worries dipped this year, including energy prices (down 5 percentage points), medical costs (down 10 percentage points) and taxes (down 12 percentage points).
Data security, privacy concerns persist
Personal data protection adds another layer of complexity to winning over the consumer. Nearly six in 10 (55 percent) of respondents in the Back-to-School survey say they are more concerned about the protection of their personal data when shopping online than one year ago. Those worries extend to the physical store, where more than half (51 percent) of respondents said they are concerned about the protection of their personal data. However, 44 percent acknowledged that they are more likely to shop at a retailer who provides education surrounding the security of their personal data.
"Given recent high-profile data breaches, consumers are keenly aware of potential threats," continued Paul. "Retailers should consider risk management as a fundamental part of their brand reputation and long-term growth. Securing the transactional environment is no longer a standalone component, and retailers need to be vigilant to detect abnormal activity, and also be ready and resilient enough to regain control should incidents occur."
A new social scene emerges
While nearly one in five (18 percent) parents of children in grades K-12 plan to visit social media sites, on par with last year, the percentage more than doubles in college households. Two in five, or 44 percent, of respondents said they or their children plan to use social media sites to assist in their back-to-college shopping.
However, this year reveals a shift in the value that households with college-bound students place on social sources, with declining emphasis on simply looking for deals. While the number of shoppers checking social media channels for promotions dipped 12 percentage points to 55 percent compared with 2013, the number who plan to visit retailers' pages (46 percent) jumped 12 percentage points, and those posting comments and reviews (37 percent) climbed 13 percentage points from 2013.
Among the electronics that college students own, the survey revealed that smartphone ownership overtook personal computer (desktop and laptop) ownership in 2014. Nine in 10 (89 percent) college students own smart phones, compared with 84 percent who own a desktop or laptop. Additionally, the percentage of college students who own tablets has grown to 32 percent from 18 percent last year.
About the Surveys
The surveys were commissioned by Deloitte and conducted online by an independent research company between July 5 and July 10, 2014. The Back-to-School survey polled a sample of 1,063 parents of school-aged children and has a margin of error for the entire sample of plus or minus three percentage points. The Back-to-College survey polled a sample of 453 parents of college children and has a margin of error for the entire sample of plus or minus five percentage points.
About Deloitte's Retail & Distribution Practice
Deloitte is a leading presence in the retail and distribution industry, providing audit, consulting, risk management, financial advisory and tax services to more than 75 percent of the Fortune 500 retailers. With more than 1,400 professionals, Deloitte's retail & distribution practice provides insights, services and solutions assisting retailers across all major subsectors including apparel, grocery, food and drug, wholesale and distribution and online. For more information about Deloitte's retail & distribution sector, please visit www.deloitte.com/us/retail-distribution.
As used in this document, "Deloitte" means Deloitte LLP and its subsidiaries. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting.
Machine Learning helps make complex systems more efficient. By applying advanced Machine Learning techniques such as Cognitive Fingerprinting, wind project operators can utilize these tools to learn from collected data, detect regular patterns, and optimize their own operations. In his session at 18th Cloud Expo, Stuart Gillen, Director of Business Development at SparkCognition, discussed how research has demonstrated the value of Machine Learning in delivering next generation analytics to impr...
Dec. 3, 2016 02:15 PM EST Reads: 6,943
More and more brands have jumped on the IoT bandwagon. We have an excess of wearables – activity trackers, smartwatches, smart glasses and sneakers, and more that track seemingly endless datapoints. However, most consumers have no idea what “IoT” means. Creating more wearables that track data shouldn't be the aim of brands; delivering meaningful, tangible relevance to their users should be. We're in a period in which the IoT pendulum is still swinging. Initially, it swung toward "smart for smar...
Dec. 3, 2016 02:00 PM EST Reads: 438
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy.
Dec. 3, 2016 01:30 PM EST Reads: 2,115
Businesses and business units of all sizes can benefit from cloud computing, but many don't want the cost, performance and security concerns of public cloud nor the complexity of building their own private clouds. Today, some cloud vendors are using artificial intelligence (AI) to simplify cloud deployment and management. In his session at 20th Cloud Expo, Ajay Gulati, Co-founder and CEO of ZeroStack, will discuss how AI can simplify cloud operations. He will cover the following topics: why clou...
Dec. 3, 2016 01:15 PM EST Reads: 581
Internet of @ThingsExpo, taking place June 6-8, 2017 at the Javits Center in New York City, New York, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. @ThingsExpo New York Call for Papers is now open.
Dec. 3, 2016 01:00 PM EST Reads: 1,852
"ReadyTalk is an audio and web video conferencing provider. We've really come to embrace WebRTC as the platform for our future of technology," explained Dan Cunningham, CTO of ReadyTalk, in this SYS-CON.tv interview at WebRTC Summit at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 3, 2016 01:00 PM EST Reads: 284
Successful digital transformation requires new organizational competencies and capabilities. Research tells us that the biggest impediment to successful transformation is human; consequently, the biggest enabler is a properly skilled and empowered workforce. In the digital age, new individual and collective competencies are required. In his session at 19th Cloud Expo, Bob Newhouse, CEO and founder of Agilitiv, drew together recent research and lessons learned from emerging and established compa...
Dec. 3, 2016 12:45 PM EST Reads: 727
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at Cloud Expo, Ed Featherston, a director and senior enterprise architect at Collaborative Consulting, discussed the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
Dec. 3, 2016 12:45 PM EST Reads: 1,942
Everyone knows that truly innovative companies learn as they go along, pushing boundaries in response to market changes and demands. What's more of a mystery is how to balance innovation on a fresh platform built from scratch with the legacy tech stack, product suite and customers that continue to serve as the business' foundation. In his General Session at 19th Cloud Expo, Michael Chambliss, Head of Engineering at ReadyTalk, discussed why and how ReadyTalk diverted from healthy revenue and mor...
Dec. 3, 2016 12:15 PM EST Reads: 1,493
We are always online. We access our data, our finances, work, and various services on the Internet. But we live in a congested world of information in which the roads were built two decades ago. The quest for better, faster Internet routing has been around for a decade, but nobody solved this problem. We’ve seen band-aid approaches like CDNs that attack a niche's slice of static content part of the Internet, but that’s it. It does not address the dynamic services-based Internet of today. It does...
Dec. 3, 2016 11:30 AM EST Reads: 829
The 20th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held June 6-8, 2017, at the Javits Center in New York City, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal ...
Dec. 3, 2016 11:30 AM EST Reads: 2,068
You have great SaaS business app ideas. You want to turn your idea quickly into a functional and engaging proof of concept. You need to be able to modify it to meet customers' needs, and you need to deliver a complete and secure SaaS application. How could you achieve all the above and yet avoid unforeseen IT requirements that add unnecessary cost and complexity? You also want your app to be responsive in any device at any time. In his session at 19th Cloud Expo, Mark Allen, General Manager of...
Dec. 3, 2016 11:15 AM EST Reads: 1,628
Bert Loomis was a visionary. This general session will highlight how Bert Loomis and people like him inspire us to build great things with small inventions. In their general session at 19th Cloud Expo, Harold Hannon, Architect at IBM Bluemix, and Michael O'Neill, Strategic Business Development at Nvidia, discussed the accelerating pace of AI development and how IBM Cloud and NVIDIA are partnering to bring AI capabilities to "every day," on-demand. They also reviewed two "free infrastructure" pr...
Dec. 3, 2016 10:45 AM EST Reads: 791
Major trends and emerging technologies – from virtual reality and IoT, to Big Data and algorithms – are helping organizations innovate in the digital era. However, to create real business value, IT must think beyond the ‘what’ of digital transformation to the ‘how’ to harness emerging trends, innovation and disruption. Architecture is the key that underpins and ties all these efforts together. In the digital age, it’s important to invest in architecture, extend the enterprise footprint to the cl...
Dec. 3, 2016 10:45 AM EST Reads: 2,139
Connected devices and the industrial internet are growing exponentially every year with Cisco expecting 50 billion devices to be in operation by 2020. In this period of growth, location-based insights are becoming invaluable to many businesses as they adopt new connected technologies. Knowing when and where these devices connect from is critical for a number of scenarios in supply chain management, disaster management, emergency response, M2M, location marketing and more. In his session at @Th...
Dec. 3, 2016 09:30 AM EST Reads: 3,929
"Dice has been around for the last 20 years. We have been helping tech professionals find new jobs and career opportunities," explained Manish Dixit, VP of Product and Engineering at Dice, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 3, 2016 09:30 AM EST Reads: 832
What happens when the different parts of a vehicle become smarter than the vehicle itself? As we move toward the era of smart everything, hundreds of entities in a vehicle that communicate with each other, the vehicle and external systems create a need for identity orchestration so that all entities work as a conglomerate. Much like an orchestra without a conductor, without the ability to secure, control, and connect the link between a vehicle’s head unit, devices, and systems and to manage the ...
Dec. 3, 2016 09:00 AM EST Reads: 454
"We're a cybersecurity firm that specializes in engineering security solutions both at the software and hardware level. Security cannot be an after-the-fact afterthought, which is what it's become," stated Richard Blech, Chief Executive Officer at Secure Channels, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 3, 2016 08:30 AM EST Reads: 501
In addition to all the benefits, IoT is also bringing new kind of customer experience challenges - cars that unlock themselves, thermostats turning houses into saunas and baby video monitors broadcasting over the internet. This list can only increase because while IoT services should be intuitive and simple to use, the delivery ecosystem is a myriad of potential problems as IoT explodes complexity. So finding a performance issue is like finding the proverbial needle in the haystack.
Dec. 3, 2016 06:30 AM EST Reads: 6,010
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life sett...
Dec. 3, 2016 05:45 AM EST Reads: 6,929