Port Washington, NY—The NPD Group released the results of its ninth annual survey of consumers’ holiday spending intentions, with the findings suggesting that consumers will approach this holiday shopping season with care.
The majority of consumers (61%) told NPD they will spend about the same as last year, which is actually up two points from 2009, while about one-third of respondents said they plan to spend less. Just 9% reported they will spend more, down two points from 2009.
“Even though the recession is technically over, lingering concerns are keeping consumers in a cautious frame of mind,” said Marshal Cohen, chief industry analyst, The NPD Group. “We are seeing what I call ‘calculated consumption.’ and I believe that it is a consumer mind-set that will be around after holiday shopping is over.”
The research firm also believes “[e]vidence of consumers’ more thoughtful and cautious approach this holiday can be seen in the fact that 62% of consumers say they plan to do some kind of ‘homework’ prior to making a purchase. Almost 44% of consumers say they will comparison shop before they buy a gift.” That research will take the form of using ads or circulars (37%) and comparison-shopping online (33%).
“What this means is consumers will be looking to find what to buy, when to buy and where to buy before even leaving the house,” said Cohen. “This eliminates the rushed decisions and can potentially eliminate some impulse purchasing from the holiday shopping equation.”
And, as in the past, the key influencer on where consumers will shop for gifts remains price (60%), with “special sale price” coming in at 58%, followed by “convenient location” at almost 47%.
As for what items consumers will be buying as gifts this year, clothing again took the top spot, with consumer electronics, including cameras and camcorders, placing fifth.
“Again, this year the real challenge is the absence of newness and excitement,” added Cohen. “The more progressive brands will learn from mistakes of the recent past and ramp up the excitement in their product offerings. And in turn retailers will be looking for those products to ignite consumers’ passion to spend this holiday.” npd.com
