Back-to-college survey 2016

1. Back-to-College Survey 2016 Two sides of the shopping story

2. Back-to-College Survey 2016Copyright © 2016 Deloitte Development LLC. All rights reserved. 2 Key Insights & Findings Deloitte’s 2016 Back-to-College Survey Spend is likely to remain robust this year with parents and students differing slightly in their spending and expectations Shoppers expect to spend most in physical stores, but the influence of digital is pervasive Students are budget conscious, and expected spending varies over the course of the college experience • Parents forecast average spend of $1,345, whereas students forecast $1,082 • While college supplies and clothing still dominate the lists for both college parents and students, students are more likely to predict spending on technology products—the most expensive category • While 57% of students say they will contribute over half of the Back-to-College funds, only 16% of parents agree • In-store prevails over online for most shopping categories, but students expect to purchase the majority of their college supplies and tech products online • 82% of students and 74% of parents will do research online before purchasing products in-store • 65% of parents and 50% of students are buying fewer traditional college supplies in light of digital technologies • 45% of students will look to social media, mostly to find the best deals • 83% of students will buy used books and seek free shipping options to stretch their back-to- college funds • Spending trends downward over the college lifecycle, peaking with freshman and reaching a low point with seniors

4. Back-to-College Survey 2016Copyright © 2016 Deloitte Development LLC. All rights reserved. 4 College supplies and clothes/shoes top the list of products that parents and students plan to buy “Please select the products you plan to purchase for your student” 2% 3% 7% 14% 15% 17% 23% 8% 8% 13% 14% 27% 32% 34% 44% 50% 75% 80% 44% of parents plan to spend on tech products Source: Deloitte in-house survey Note: Parent survey sample size (N) = 750; Student survey sample size (N) = 1,200; Multiple select question Technology products Other products10% 9% 12% 21% 17% 20% 25% 20% 9% 13% 21% 31% 30% 46% 36% 44% 78% 89% 55% of students plan to spend on tech products Parents Students “Please select the products you plan to purchase for yourself” College supplies Clothes/shoes Shower and bathing items Dorm accessories and supplies Backpack or book bag Kitchen and dining supplies College-branded gear or supplies Dorm furniture Television Luggage Jewelry/handbag/personal accessories Computer Printer or other computer hardware Cell phone/smart phone Computer software/small accessories Tablet, e-reader Wearable device Game console

5. Back-to-College Survey 2016Copyright © 2016 Deloitte Development LLC. All rights reserved. 5 While college supplies and clothing & accessories top most parents’ shopping lists, computer shoppers spend the most Average spend planned by parents: $1,345 Source: Deloitte in-house survey Note: Parent survey sample size (N) = 750; Spending on Voice and mobile data plans (Avg. $124) is not shown on this slide Avg. category spend is calculated only for the respondents who plan to purchase the above mentioned category By category 36% plan to buy Computers & Hardware Avg. spend $673 21% plan to buy Electronic Gadgets Avg. spend $392 86% plan to buy College Supplies Avg. spend $521 75% plan to buy Clothing & Accessories Avg. spend $312 61% plan to buy Household Appliances & Supplies Avg. spend $253 47% plan to buy Dorm Furniture & Supplies Avg. spend $321 Parents

6. Back-to-College Survey 2016Copyright © 2016 Deloitte Development LLC. All rights reserved. 6 Students are also most likely to seek basic supplies but they spend most on computers when they shop the category Average spend planned by students: $1,082 Source: Deloitte in-house survey Note: Student survey sample size (N) = 1,200; Spending on Voice and mobile data plans (Avg. $84) is not shown on this slide Avg. category spend is calculated only for the respondents who plan to purchase the above mentioned category 44% plan to buy Computers & Hardware Avg. spend $473 32% plan to buy Electronic Gadgets Avg. spend $378 94% plan to buy College Supplies Avg. spend $388 55% plan to buy Household Appliances & Supplies Avg. spend $196 79% plan to buy Clothing & Accessories Avg. spend $202 By category 40% plan to buy Dorm furniture & Supplies Avg. spend $279 Students

7. Back-to-College Survey 2016Copyright © 2016 Deloitte Development LLC. All rights reserved. 7 Students claim they will contribute more to the back-to-college budget than parents expect they will cover Source: Deloitte in-house survey Note: Students survey sample size (N) = 1,200; Parents survey sample size (N) = 750 2% 6% 12% 19% 16% 16% 25% 12% 24% 25% 21% 8% 6% 2% 0% 1-10% 11-25% 26-50% 51-75% 76- 99% 100% Parent vs. student opinion: “Student contribution to total back-to-college shopping budget” 57% of students plan to contribute more than half of budget 16% of parents expect their kids to contribute more than half of budget Parents Students

8. Back-to-College Survey 2016Copyright © 2016 Deloitte Development LLC. All rights reserved. 8 In-store remains the preferred shopping channel, particularly among parents *Undecided (In-store/Online) Source: Deloitte in-house survey Parents sample (N) = 750; Students sample (N) = 1,200 Parents 21% $284 Undecided* ? 25% $341 Online 54% $720 In-store Students 24% $266 Undecided* ? 35% $377 Online 41% $440 In-store Spending by channel

9. Back-to-College Survey 2016Copyright © 2016 Deloitte Development LLC. All rights reserved. 9 Students shop online more than parents, but preferred channel varies by category Source: Deloitte in-house survey 13% 17% 20% 25% 31% 34% 70% 63% 61% 51% 44% 43% 17% 20% 18% 24% 24% 23% Parents Students 17% 27% 26% 38% 38% 43% 61% 52% 49% 32% 34% 34% 23% 21% 25% 30% 28% 22% Household appliances & supplies Clothing & accessories Dorm furniture & supplies Electronic gadgets College supplies Computers & hardware In-StoreOnline Undecided (Online/In-store) Category Category spend by channel (%)

10. Back-to-College Survey 2016Copyright © 2016 Deloitte Development LLC. All rights reserved. 10 Parents favor traditional venues, whereas students are more likely to purchase online “In what types of retail environments do you plan to do your back-to-college shopping?” Source: Deloitte in-house survey Note:; Parents survey sample size (N) = 750; Students survey sample size (N) = 1,200; Multiple select question 6% 11% 12% 17% 19% 21% 21% 23% 23% 24% 30% 39% 46% 51% 53% 63% Catalogs Off-price stores Consignment shops/thrift stores Drug stores Fast fashion apparel retailers Specialty clothing stores Supermarkets Home electronics stores Dollar stores Home furnishings and housewares stores Warehouse membership clubs Office supply/technology stores Online sites Traditional department stores Discount/value department stores Bookstores/college bookstores 7% 11% 13% 15% 22% 22% 23% 23% 25% 30% 31% 41% 41% 43% 64% 71% Catalogs Off-price stores Warehouse membership clubs Drug stores Home furnishings and housewares stores Consignment shops/thrift stores Fast fashion apparel retailers Specialty clothing stores Home electronics stores Dollar stores Supermarkets Traditional department stores Office supply/technology stores Discount/value department stores Online sites Bookstores/college bookstores Parents Students

11. Back-to-College Survey 2016Copyright © 2016 Deloitte Development LLC. All rights reserved. 11 With the rise of digital, parents and students are researching in- store purchases online and buying fewer traditional college supplies “Please indicate your level of agreement with the following statements (% who agree or somewhat agree)”* Source: Deloitte in-house survey Note: Parents sample size (N) = 750; Students survey sample size (N) = 1,200; * Percent represents respondent who agreed or somewhat agreed with statements. 50% 79% 82% 69% 65% 71% 74% 87% I'm buying fewer traditional college supplies because of digital technologies in and out of the classroom I am more likely to purchase from online retailers who offer free shipping during the B2C shopping season Do research online first before purchasing B2C products in a store Shop at different points throughout the summer to take advantage of deals Parents Students

12. Back-to-College Survey 2016Copyright © 2016 Deloitte Development LLC. All rights reserved. 12 “Which of the following payment methods will you likely use for your back-to-college purchases?” Source: Deloitte in-house survey Note: Parents survey sample size (N) = 750; Students survey sample size (N) = 1,200 Parents Students 50% 67% 44% 7% 5% 1% 67% 57% 57% 12% 8% 2% Debit Card Credit Card Cash/Check Gift Card Digital Payment Other Parents most often shop with credit cards, whereas students favor debit cards

14. Back-to-College Survey 2016Copyright © 2016 Deloitte Development LLC. All rights reserved. 14 Seniors are likely to spend the least compared to shoppers from other grades “How will your spending this year on back-to-college items compare with what you spent last year?” Source: Deloitte in-house survey Note: Freshmen (n) = 165; Sophomore (n) = 291; Junior (n) = 317; Senior (n) = 281; Graduate (n) = 146 66% 27% 30% 19% 31% 25% 32% 42% 43% 36% 9% 41% 28% 38% 34% Freshmen Sophomore Junior Senior Graduate Expect to spend less Expect to spend the same Expect to spend more 1. Need more items 2. Need more expensive items 3. Prices are generally higher 1. Need fewer items 2. Need less expensive items 3. My household has less money Why do you plan to spend “more”? Why do you plan to spend “less”? Avg. Spend $1,352 $1,096 $845$1,120 $1,129

15. Back-to-College Survey 2016Copyright © 2016 Deloitte Development LLC. All rights reserved. 15 Most students plan to shop during the traditional back-to-college season, with early shoppers spending more Source: Deloitte in-house survey Note: Sample size (N) = 1,200 “When are you likely to begin your back-to-college shopping?” July 0% September OctoberAugustEarlier than July 6% EarlyinJuly 18% LaterinJuly 30% EarlyinAugust 32% LaterinAugust 11% 2% ~86% $349 $323 $309 $293 $270 $259 Avg. Spend

16. Back-to-College Survey 2016Copyright © 2016 Deloitte Development LLC. All rights reserved. 16 Male students will spend considerably more on tech products compared to female students Source: Deloitte in-house survey Note: Male Students (n) = 526; Female Students (n) = 674 Avg. category spend is calculated only for the respondents who plan to purchase that category $ 517 Computer & Hardware $ 428 $ 434 Electronic Gadgets $ 308 $ 397 College Supplies $ 381 $ 265 Dorm Furniture & Supplies $ 290 $ 216 Households Appliances & Supplies $ 182 $ 205 Clothing & Accessories $ 199 Male Avg. spend: $1,196 Female Avg. spend: $994Category

17. Back-to-College Survey 2016Copyright © 2016 Deloitte Development LLC. All rights reserved. 17 Most students will use their smartphones during the shopping journey, but they will look for information rather than inspiration “Device you use or plan to use for back-to- college shopping: smartphone/tablet*” 60% 61% 63% 68% 69% Access a retailer's website Get product information Access a mobile shopping app Get price information Find a store location “With regard to your back-to-college shopping, for what purposes would you be using/would you likely use a smartphone?#” 71% Source: Deloitte in-house survey * Who own a smartphone (n = 1,163) or a tablet (n = 675) # Multiple select question SmartphoneTablet 49% 53% 57% 59% 60% Make a purchase Shop online Get product information Get price information Access a retailer's website 41%

18. Back-to-College Survey 2016Copyright © 2016 Deloitte Development LLC. All rights reserved. 18 45% Use of social media is high among students and helps them to navigate the best deals “Do you plan to use social media sites to assist in your back-to-college shopping?” 32% 64% 64% 66% 71% To visit retailers' pages on social networking sites To read reviews/recommendations To browse products To receive a coupon To find out about promotions/view ads “With regard to your back-to-college shopping, how do you plan to use social media sites?#” Source: Deloitte in-house survey Note: Sample size (N) = 1,200; # Multiple select question

19. Back-to-College Survey 2016Copyright © 2016 Deloitte Development LLC. All rights reserved. 19 Budget-conscious students will buy used books or rent to stretch their back-to-college funds 83% 67% 55% Will buy more used textbooks to help stretch my budget Will rent more textbooks to help stretch my budget Prefer to purchase from retailers that offer an option to BOPUS** or buy online/return to store this B2C season “Please indicate your level of agreement with the following statements (% who agree or somewhat agree)*” Source: Deloitte in-house survey Note: Sample size (N) = 1,200. * Percent represents respondents who agreed or somewhat agreed with statements. ** Buy online pick Up in store

20. Back-to-College Survey 2016Copyright © 2016 Deloitte Development LLC. All rights reserved. 20 About the survey The surveys were commissioned by Deloitte and conducted online by an independent research company from June 22 – 27, 2016. The study involved two surveys, which polled a sample of 750 parents with college-going children and 1,200 college-going students, and has a margin of error for the entire sample of plus or minus three percentage points. 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.