According new research from Information Resources, Inc. consumers will take a more strategic approach to holiday shopping this year and are heading into stores with shopping lists and a budget in mind. They are not expected to give up their focus on conservative spending by creating tremendous credit card balances.
Consumer attitudes and concerns surrounding gas prices, cost of utilities, job stability, the rise in food prices, and the recession are all seeing a decline in how these factors will affect this year's holiday shopping rituals. Consumers' holiday shopping will be less affected by economic factors than last year, says the report. In comparison to last year, the key survey findings include:
Thom Blischok. President, IRI Consulting & Innovation, notes that "... last year's dismal holiday retail results are being left behind as consumers are slightly more optimistic about the economy and are much more savvy about how they attack their holiday gift and meal list."
The values American consumers continue to hold dear during the recession, religion, family time, and communal holiday meals, remain important to the shopper. Specifically the study found that:
Nearly two thirds of consumers plan to eat their holiday meals at home, half plan to dine at their friends' homes and holiday parties, and almost all plan to consume alcoholic beverages during these holiday parties. Consumers plan to spend the same or less this year than in 2008 on holiday meals, according to the report. More than 94% plan on spending no more than $500 on food and 90% plan on spending no more than $200 on holiday beer, wine, and spirits purchases. Only 11% of consumers mention they will shop without a grocery list, and private label buying continues to be top of mind for shoppers.
Additional survey findings include:
Blischok concludes that "... CPG companies and retailers need to take advantage of this... savvy shopper... by appealing to values and budgets... (but) these actions and strategies must be swift... especially as shoppers continue making purchase decisions in their homes."
For more information, please visit Information Resources here.
Obviously revenues will be down for retailers. But in the bigger picture you need to graph the last 20 years and I am sure even the lower sales would be considered over all growth in spending when viewed in the proper time frame. For example the Dow is up ridiculously vs 1980 even at 9500. In fact the Dow is right now over valued vs historical pricing and consumer spending is the same. If spending goes up 4% for 4 years (16%) then drops 2% the 5th year people think the sky is falling when in actuality spending has grown faster than GDP or Inflation over that time, especially when the 4% is compounded over the first 4 years. (I made up the numbers for to make the point)