• by Ray Schultz , Columnist, October 17, 2024

The back-to-school sales season is over, and email teams are facing up to disappointing results in at least one key product area. 

Back-to-school technology sales increased by only 1% YoY. And the average selling price increased by 2%, according to a new report by Circana.  

Among 24 technology categories tracked, 15 groups suffered declines, while nine saw growth.

Clearly, consumers are exercising caution and they may continue to do so as the holiday sales period approaches, Circana notes.   

But some categories saw robust growth. For instance, the wearables and health technology field enjoyed a 26% revenue surge to $607.9 million, making it the season’s top performer.  

Tablet sales increased by 17%, a trend fueled by end-of-life cycles for devices purchased during the pandemic years, and aggressive discounting for the top-selling models, the study says.  

PC sales suffered a slight downturn, Desktop revenue fell by 10%, but gaming desktops jumped by 27%, due to growing demand for “high-performance” setups, the study says.  

Notebook sales were flat, but Windows-based devices did best. 

“Consumers had their sights set on getting the most bang for their buck, leaning heavily on promotions this back-to-school season,” says Mike Crosby, executive director and industry analyst, B2B technology, Circana.  

Crosby continues: “As we move closer to the holiday season, we expect many shoppers to hold off on making larger tech purchases, particularly for higher-priced items, in anticipation of deeper discounts during Cyber Week. Retailers will need to be more strategic with their promotional offerings to capture the attention of these value-driven consumers.”