As parents across the UK gear up for the back-to-school season, retailers are facing increasing pressure to offer competitive prices amidst a backdrop of ongoing cost-cutting measures by consumers.
According to the latest analysis by leading data and analytics company GlobalData, retailers who fail to effectively communicate their pricing strategies risk losing out to rivals.
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“The 2024 back-to-school retail winners will be determined by their ability to appeal to a price-conscious shoppers,” said Zoe Mills, lead retail analyst at GlobalData.
“Consumers are cutting back where possible, seeking low-cost alternatives to ensure they can provide all the items required.”
GlobalData’s research revealed that the number of consumers who stated they actively cut back on back-to-school spending to save money increased by 5% to 73% in 2023.
This trend is expected to continue, despite the recent deceleration of inflation.
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By GlobalDataMarks & Spencer (M&S), known for its consistent pricing on school uniforms, is poised to benefit from the current market conditions.
“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,” explained Mills.
Among the UK’s major supermarkets, Tesco is predicted to have a strong back-to-school season, potentially outperforming its rival Asda.
“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,” said Mills.
Tesco’s focus on range, quality, and display, coupled with its one-year guarantee on uniforms, has helped it gain market share in recent years.
Retailers must strike a balance between affordability and quality, particularly when it comes to school uniforms.
“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,” noted Mills.
By offering a combination of competitive prices and quality products, retailers can position themselves to capture the back-to-school market and drive sales.
