Report shows consumers will be frugal for holiday shopping
U.S. households are expected to spend an average of $390 on Christmas gifts this holiday season, down from last year’s estimate of $418, The Conference Board reports.
The survey of Christmas gift spending intentions covers a nationally representative sample of 5,000 U.S. households. It was conducted for The Conference Board in November by TNS, the world’s largest custom research company.
“Consumers are approaching the holiday season very cautiously,” said Lynn Franco, Director of The Conference Board Consumer Research Center. “Job losses and uncertainty about the future are making for a very frugal shopper. Retailers will need to be quite creative to entice consumers to spend, both in stores and online this holiday season, as consumers most certainly will expect major markdowns and bargains.”
Only 26 percent of all households intend to spend $500 or more on Christmas gifts, down slightly from 27 percent last year. Among other households, 35 percent plan to spend $200 to $500, down from 37 percent last year, and 39 percent are planning to spend less than $200, up from 35 percent in 2008.
When it comes to buying online, a report from The Consumer Internet Barometer, a separate survey produced quarterly by The Conference Board and TNS, shows that consumers will also approach online holiday shopping cautiously, holding off on big ticket items and holding out for major incentives like free shipping and discounts.
“Even as the economy is starting to show signs of improvement, consumers are taking a cautious approach to their purchase decisions, focusing on lower ticket items that clearly communicate value,” notes Bridget Armstrong, head of Consumer Sector at TNS.