Independents
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NRF: Holiday gift budgets up slightly this year
Price top factor in where to shop
October 16, 2008
Washington--U.S. consumers plan to spend an average of $832.36 on holiday shopping this year, a 1.9 percent increase over last year's $816.69, according to the National Retail Federation's (NRF) 2008 Holiday Consumer Intentions and Actions Survey, conducted by Big Research.
This represents the lowest increase in planned consumer spending since the survey began in 2002, the NRF said.
According to the survey, 40 percent of shoppers say that sales or promotions will be the primary factor when determining where to shop this holiday season, while another 12.6 percent state that everyday low prices are most important.
Other consumers rated selection (21.5 percent) and merchandise quality (13.4 percent) as the primary factor.
Only a handful of consumers said they are making buying decisions based on a convenient location (5.6 percent) or helpful customer service (5.2 percent) this year, the NRF said.
"Retailers are going into this holiday season with their eyes wide open, knowing that savings and promotions will be the main incentive for shoppers," NRF President and Chief Executive Officer Tracy Mullin said in a media release issued on Thursday. "No one is canceling Christmas because money is tight, but consumers will be sticking to their budgets and looking for good deals when deciding where to spend this holiday season."
As in previous years, gift-giving is the largest component of shoppers' holiday budgets. According to the survey, this year, the average person will spend $466.13 on gifts for family, $94.52 on friends, $26.70 on co-workers and $43.50 on other gifts.
For the first time in the survey's history, people say they plan to spend less on gifts for family members ($466.13 in 2008 vs. $469.14 in 2007), the NRF said.
Spending is expected to be particularly weak among young adults, as 18-24 year olds plan to spend $50 less on gifts than they did last year.
Consumers' holiday budgets this year also include spending on decorations ($51.43), greeting cards and postage ($32.43), candy and food ($95.04), and flowers ($22.61).
According to the survey, 40.2 percent of consumers will start their holiday shopping before Halloween. This figure is consistent with numbers from previous years and demonstrates that bargain hunters are looking for ways to spread out spending over a period of time.
Most consumers (69.7 percent) plan to do some shopping at discount stores. In addition, more than half of American adults plan to shop at department stores (58 percent), while more than one-third of shoppers plan to shop at clothing (37.3 percent) and electronics (37.3 percent) stores.
As the Internet becomes more of a mainstay in the retail landscape, Americans are heading online to compare prices, research retail locations and look for gift ideas before heading to stores.
Although the number of people buying gifts online is expected to remain flat over last year (44.2 percent in 2008 vs. 44.3 percent in 2007), shoppers will rely on the Internet more than ever to browse for holiday gifts and research products. According to the survey, the Internet will influence 33.6 percent of holiday purchases, up from 30.2 percent last year and 28.9 percent in 2006.
Though most consumers plan to stick to a budget this holiday season, many are padding it with a little something extra. Knowing that the holidays often abound with good deals, more than half of shoppers (56.6 percent) are planning to make additional non-gift purchases for themselves or their families this holiday. Some may have even been holding back on personal purchases for the last few months to take advantage of holiday pricing. Shoppers will spend an average of $119.83 on these purchases, up from $106.67 last year.
The NRF continues to expect holiday sales to increase 2.2 percent to $470.4 billion.
The NRF 2008 Holiday Consumer Intentions and Actions Survey was designed to gauge consumer behavior and shopping trends related to the winter holidays. The survey polled 8,117 consumers and was conducted between Sept. 30-Oct. 7. This was after Congress passed the economic rescue package but before last week's substantial stock market decline. The consumer poll has a margin of error of plus or minus 1 percent.
The NRF is the largest retail trade association in the world, with members including department, discount, drug, grocery, independent and specialty stores, catalog merchants, chain restaurants and e-tailers, as well as the industry's key trading partners of retail goods and services.
For more information about the NRF, visit its Web site, NRF.com.
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Paso Robles, Calif.--Eleven percent of Jewelry Consumer Opinion Council (JCOC) panel members plan to purchase fine jewelry or watches as a gift this holiday season, with 82 percent of this group believing they are either somewhat or extremely likely to do so, according to the JCOC's Pre Holiday study. Read More
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