August 30, 2013
Growth in Back-to-School Buying Power Driven by Hispanic Households, New Geoscape Study Reveals—Hispanic Spending Increased 20 Percent More Than the National Average
Geoscape, a provider of business intelligence technology, data and analytics, recently announced the results of an exclusive study exploring the back-to-school buying habits of consumers in the United States, segmented by ethnicity. The study revealed that Hispanic household spending rose by 55 percent between 2003 and 2011, outpacing all other ethnicities by over 20 percent.
The report’s other findings show that spending from Asian Americans and African Americans is also rising, while the overall national average has leveled off after 2009. In fact, the National Retail Federation’s 2013 Back-to-School study projects a slight decrease in average household spending this year whereas Hispanic back-to-school spending is surging.
Other key findings include:
- Hispanic spending rises highest. The total amount of Hispanic annual back-to-school spending increased by 55 percent between 2003 and 2011. This total outpaces the national increase of 36 percent across all U.S. households.
- Hispanics spending more in higher education. In spending categories around college tuition, Hispanic households are outgrowing Non-Hispanics by a 2:1 margin. Hispanic household expenditures for college tuition grew by 124 percent during this eight year period. Non-Hispanic household expenditures in this category grew by 61 percent.
“The growing value of multicultural consumers in the back-to-school shopping season can only be ignored at the expense of retailers and manufacturers who don’t see this powerful trend,” said Cesar Melgoza, CEO of Geoscape, in a news release. “As the buying power of emerging ethnicities continues to rise, it’s important for businesses to allocate more resources and marketing efforts to serve these increasingly profitable consumers.”
The Geoscape Back-to-School Spending Study was developed through Geoscape’s analytical engines, which compiled data from the U.S. Census, U.S. Department of Labor and the Geoscape 2013 American Marketscape DataStream report.