US shoppers to constrain holiday spending - NRF

US shoppers to constrain holiday spending - NRF
WGSN 16.10.08

Although US shoppers will spend more on Holiday-related purchases this year, the increase will be at its lowest level in at least six years, according to the National Retail Federation's annual survey.
Consumers plan to spend an average of $832.36 on Holiday shopping, up just 1.9% compared with a year earlier, the smallest rise since 2002, when the NRF began conducting the survey.
For the first time in the survey's history, the NRF said people plan to spend less on gifts for family members – $466.13 this year, down from $469.14 last year – but spending will increase on gifts for friends and co-workers, it found.
Meanwhile, spending is expected to be particularly weak among 18-24-year-olds, who expect to spend $50 less on gifts than last year.
The survey comes as the trade group has already forecast 2008 US Holiday sales to increase 2.2%, also the lowest level of growth in six years.
"Consumers will be sticking to their budgets and looking for good deals when deciding where to spend this holiday season," NRF chief executive Tracy Mullin said.
As shoppers look to stretch limited budgets this Holiday, 40% said sales or price discounts would be the largest factor in determining where they will shop. Almost 70% plan to do some shopping at discount stores, while 58% plan to shop at department stores.
With retailers offering some of their most enticing discounts of the year during the holiday season, the survey found that shoppers expect to spend $119.83 on additional non-gift purchases for themselves or their families during the Holiday season, up from $106.67 last year.
The survey, conducted for NRF by BIGresearch, polled 8,117 consumers between September 30-October 7.

© WGSN 2008

(posted by Katya Hochleitner)