40% of consumers plan to start shopping before Halloween, NRF
In the event that retailers needed yet another reminder that this holiday season will be challenging, consumers are happy to oblige. According to NRF's 2008 Holiday Consumer Intentions and Actions Survey, conducted by BIGresearch, U.S. consumers plan to spend an average of $832.36 on holiday-related shopping, up a paltry 1.9 percent over last year's $816.69. This represents the lowest increase in planned consumer spending since the survey began in 2002.
Though shoppers choose to visit stores for different reasons, consumers say one factor will play the biggest role in buying decisions this year: price. According to the survey, 40.0 percent of shoppers say that sales or promotions is the largest factor when determining where to shop, while another 12.6 percent state that everyday low prices are most important. Other consumers rated selection (21.5%) and merchandise quality (13.4%) as the primary factor. Only a handful of consumers said they are making buying decisions based on a convenient location (5.6%) or helpful customer service (5.2%) this year.
“Retailers are going into this holiday season with their eyes wide open, knowing that savings and promotions will be the main incentive for shoppers,” said NRF President and CEO Tracy Mullin. “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' budgets. 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 last year). Spending is expected to be particularly weak among young adults, as 18-24 year-olds plan to spend $50 less on gifts than one year ago.
“It might not be easy to pull back on small gifts for a co-worker or a child's teacher, but consumers feel like their family understands their current situation,” said Phil Rist, Vice President of Strategy for BIGresearch. “Americans might eliminate an extended family gift exchange or buy one big present for all of the kids to compensate for a budget-friendly Christmas this 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).
While retailers spend the month of October rolling out holiday merchandise and promotions, consumers are standing by at the ready. 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.
With sales and promotions the theme of the 2008 holiday season, it's no surprise that most consumers (69.7%) plan to do some shopping at discount stores. Additionally, more than half of American adults plan to shop at department stores (58.0%), while more than one-third of shoppers plan to shop at clothing (37.3%) and electronics (37.3%) stores.