from staff
The National Retail Federation reported that the economy continues to affect shoppers, but that there’s reason for optimism.
“This holiday season is going to be very different than a year ago in a whole host of ways,” said the federation.
The group said Americans plan to spend an average of $688.87 on holiday-related shopping, a slight increase over last year’s $681.83. But those numbers just tell a fraction of the story.
Mining its data, the federation found the following trends.
• Americans aren’t ready to declare an end to the recession. According to the data, almost 62 percent of holiday shoppers say the economy will impact their spending plans this year, although it’s a good sign that the percentage is down from more than 65 percent last year. While almost 82 percent who say they are affected intend to spend less, 54 percent say they also will compensate by shopping for sales more often, almost 41 percent will use coupons more frequently and 31 percent will comparison-shop online.
• Fundamentals are out and fun is in. While gift cards and clothing remain the most requested holiday items this year, the number of people putting jewelry on their wish lists is up from 21 percent last year to 23 percent this year. More people are also asking for personal care or beauty items, 17 percent last year and 18 percent this year.
• There’s still room for service with a smile. While sales or price discounts are still chosen by the largest share of survey respondents, almost 42 percent, as the most important factor, that dropped from last year’s all-time high of 43.3 percent. Rising are customer service, at 5 percent, the highest percentage since the survey began in 2002, and merchandise quality, at almost 13 percent. Also, store location is not as important given that shoppers can go online.
• It’s all about value. Price is a factor for just about everyone, but unlike 2009 and 2008, price is not the only factor shoppers will consider when making buying decisions. Shoppers are looking at the big picture. Does the digital photo frame that costs 20 percent more hold twice as many pictures? Will the pre-lit artificial Christmas tree save enough time to make up for the $40 price difference over the unlit tree?
• Young adults are a walking contradiction. The Generation Y group is not shopping early (only about 28 percent started before Halloween compared with 37 percent of all adults), but the group has an ambitious list of the stores where it wants to shop. They’re more likely than adults in general to buy at department stores, clothing stores and electronics stores.
They’re also spending less on the holiday season compared to other adults ($469.32 for young adults 18-24 vs. $688.87 average) but they’re among the first to make “nongift” purchases for themselves (69 percent of young adults vs. 57 percent on average). More than half say the economy will impact their spending, but they’re also twice as likely as other adults to say that customer service is the most important factor.
• It’s all about me, again. The number of people who will take advantage of holiday sales to make nongift purchases for themselves is up to 57 percent this year from 53 percent last year, and the average person will spend about $108 on these “just for me” purchases. Most likely to spend on themselves are men (58 percent), young adults ages 25-34 (71 percent) and Southerners (almost 59 percent).
• Men are from Mars and women are from Venus. Far fewer men start their holiday shopping before Halloween (32 percent of men, 42 percent of women) and men are more likely to request consumer electronics (40 percent) or sporting goods (26 percent), while women prefer gift cards (64 percent), jewelry (33 percent) and home decor (26 percent). But men will also spend about $20 more than women on holiday purchases ($698.76 for men, $679.48 for women) and are more likely to shop at department stores than their female counterparts (almost 57 percent of men, almost 53 percent of women).
• The biggest spenders are just one click away. Online shoppers have much deeper pockets this year. People who will shop online this year will spend almost 25 percent more than average adults ($858.49 for online shoppers vs. $688.87 for all adults). The group is also more likely to start shopping early (almost 43 percent started shopping before Halloween) and make nongift purchases for themselves (61 percent of online shoppers vs. 57 percent of all adults). Also, online shoppers are no more likely to say that sales and discounts are the main factor when deciding where to buy than average shoppers.
• Can you hear me now? Retailers are ramping up their mobile apps and websites and understanding that iPhones and Droids are all the rage. More than one-fourth of Americans who have a smart phone will use their mobile device to shop for gifts, compare prices and research products. That number is higher among 18-24 year-olds. It’s a clear signal to retailers that this mobile trend is not going away anytime soon.