As the new school year approaches, retailers are gearing up to meet the demands of back-to-school shoppers. First Insight collected survey responses focusing on footwear shopping habits to provide a comprehensive understanding of consumer behavior as it relates to back-to-school shoes. The findings from the survey conducted with FDRA and FFANY reveal significant insights that can help retailers fine-tune their strategies to maximize sales and customer satisfaction.
Consumer Behavior Insights
The results of the survey highlighted where families are choosing to shop and how much they are willing to spend on back-to-school footwear. Notably, 67% of families with annual incomes under $50,000 are shopping at local chains or big-box retailers. In contrast, 22% of families in the West region prefer buying from brand-owned stores or outlets. Additionally, 82% of all families plan to purchase their back-to-school shoes between mid-July and September 1, with spending trends varying significantly by region.
Understanding these preferences can help retailers tailor their inventory and marketing efforts to cater to different demographics. For instance, focusing on promoting budget-friendly options in the Midwest and Northeast can attract more price-sensitive shoppers, while highlighting premium brands in the West may capture higher-income consumers.
Impact of Social Media
Social media continues to play a crucial role in back-to-school shopping. Our survey indicates that 45% of upper-income families use Instagram for research and shopping, while over 30% of families earning less than $50,000 do not rely on social media for these purposes. With Gen Z lifestyle trends trending upward for social media use, online social commerce like TikTok Shop are growing in popularity. This divergence suggests that retailers need to adopt a nuanced approach to social media marketing.
To effectively leverage social media, retailers should create targeted campaigns that resonate with their audience's specific needs and preferences. For example, using Instagram and Facebook ads to highlight trendy, high-quality shoes can attract upper-income families, while offering exclusive discounts and promotions through these platforms can engage budget-conscious shoppers.
Online vs. In-Store Shopping
The shift towards online shopping continues to grow, with 58% of families planning to make most of their shoe purchases online. This trend underscores the importance of enhancing the online shopping experience. Retailers must focus on improving website usability, ensuring accurate product descriptions, and offering reliable and fast shipping options.
To reduce return rates, investing in better technology for fit and sizing recommendations is essential. Additionally, providing incentives like discounts on future purchases or reward points for choosing slower shipping options can help manage high shipping costs while maintaining customer satisfaction.
Inflation and Spending Trends
Inflation is significantly impacting consumer spending, with families expecting to pay more for back-to-school shoes compared to previous years. Despite this, many consumers are willing to spend more on higher-priced brands, showing a shift in spending behavior.
Retailers can navigate this landscape by adjusting their pricing strategies to balance affordability and quality. Offering flexible payment options, like installment plans, can help make higher-priced items more accessible. Additionally, clear communication about the value and durability of products can justify higher prices and encourage purchase decisions.
Gaining insights into how consumers are continuously changing their behavior can help retailers adapt. By leveraging AI and Voice of the Customer (VoC) data, retailers can make informed decisions that optimize product assortments, pricing strategies, and even marketing efforts. Embracing these strategies will not only enhance the shopping experience but also drive profitability in a competitive market.
For more information on how First Insight's solutions can transform your retail strategy, chat with one of our Insight Experts!
