Though shoppers still plan to spend more on the holidays this year than last, consumers say their spending will be a bit restrained this holiday season. According to NRF's 2007 Holiday Consumer Intentions and Actions Survey, conducted by BIGresearch, U.S. consumers plan to spend an average of $816.69 on holiday-related shopping.
In addition, these shoppers will spend an additional $106.67 on special “non-gift” purchases by taking advantage of special promotions and discounts to treat themselves. This brings total planned holiday-related spending to $923.36, an increase of 3.7 percent from 2006 and in line with NRF's economic forecast of 4.0 percent.
“Shoppers will be a little more conservative with their spending as they become more aware of the softness in the economy,” said NRF President and CEO Tracy Mullin. “It is safe to say that many retailers will be competing on price, causing this holiday season to be very promotional - a tremendous win for consumers.”
While the traditional kickoff to the holiday season is Black Friday, most people won't wait to begin bargain hunting. This year, 40.3 percent of shoppers will begin holiday shopping before Halloween.
“Although the day after Thanksgiving remains the official kickoff for holiday shopping, consumers are out in the stores far earlier looking for holiday gifts,” said Phil Rist, Vice President of Strategy for BIGresearch.
“Retailers that are promoting holiday merchandise are responding to the needs of their shoppers, who are already looking to purchase greeting cards, wrapping paper and a variety of gifts.”
Though consumers plan to shop at a variety of stores this year, no particular format will see significant traffic gains from last year. Discounters can expect the most traffic as 68.4 percent of consumers plan to shop there (compared to 70.3% in 2006).
Department Stores will also see a lion's share of traffic as 58.2 percent will choose this format (vs. 61.6 percent last year). Other popular destinations include grocery stores (44.6% in 2007 vs. 49.3% in 2006) and online (44.3 percent in 2007 vs. 47.1% in 2006).
The Internet will once again play a crucial role for retailers this holiday season as consumers, on average, plan to do 30.2 percent of their shopping online compared to 28.9 percent in 2006.
As expected, most holiday budgets will be allocated to gifts, with the average person spending $469.14 on family, $90.13 on friends, $22.79 on coworkers, and $37.45 on other people like clergy, teachers, and babysitters.
The survey also found that most Americans plan to increase spending on flowers ($20.53 vs. $18.98 last year) and decorations ($49.76 vs. $46.49 last year). Consumers also plan to spend $94.69 on candy and food and $32.21 on greeting cards and postage.
marketing@alchempro.com
