Back-to-school spending is steady in 2025, but shopper behavior is split. Parents are prioritizing tech and clothing—yet these are also the first to be cut when budgets tighten. Consumers are shopping earlier, seeking deals, and using AI to keep costs down.

With shopping habits divided by generation and income, retailers must stay flexible, personalize offers, optimize for AI, and create seamless cross-channel experiences.

Here’s why.

1. Spending is stable, but priorities are polarized

Nearly three-quarters of shoppers plan to spend the same or more on back-to-school shopping this year, according to a recent PwC survey.

• Technology and clothing are major spending priorities—25% of parents plan to spend over $500 on technology and 16% plan to spend more than $500 on clothing and shoes this year.
• However, among parents who expect to spend less on back-to-school this year, technology (44%) and clothing (40%) are the top two categories they plan to cut back on.

Key takeaway: Retailers should recognize that technology and clothing are both high-priority and high-risk categories.

• Retailers can use personalization to retain big-spenders while appealing to cost-conscious shoppers at the same time.
• They can also create tiered product strategies, offering premium and affordable versions of the most popular items.

2. Consumers are starting earlier, using AI to shop smarter

Only purchasing items on sale (37%) and shopping earlier (37%) are the main ways consumers plan to save on back-to-school shopping, per PwC.

• About a fifth of back-to-school shoppers plan to use AI tools to help them find online deals.
• Over half (55%) of US consumers use generative AI to conduct research, 47% use it to receive product recommendations, and 43% use it to seek deals, according to February 2025 data from Adobe.

Key takeaway: Back-to-school shoppers are deal-driven and open to using AI as a shopping assistant. Retailers should ensure their deals are discoverable for AI, optimize for early bird shoppers, and consider incorporating AI-driven product discovery into their platforms.

3. Channel preferences vary by generation, income level

Gen Z parents are more likely than millennials or Gen X to shop exclusively in-store, per PwC.

• While hybrid shopping (a mix of in-store and online) is the most popular approach across generations, millennials and Gen Xers are more likely to shop online, while Gen Zers and baby boomers are more likely to shop in person.
• Households earning $75,000 or more are nearly twice (14%) as likely to shop exclusively online than those earning less (8%).
• Households earning less than $75,000 are twice as likely to shop in-store only (30% vs. 17% of higher earners).

Key takeaway: Retailers must ensure consistent experiences across digital and physical channels.

• To appeal to shoppers who prefer physical stores, retailers can highlight in-store exclusives or experiences.
• For digital shoppers, retailers can showcase convenience, delivery perks, and digital personalization.
• To connect the online and in-store experience, retailers can use services like click-and-collect or in-app shopping lists to help consumers move seamlessly between channels.

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