11/15/13
Sales and coupons are the most influential factors in Americans’ choices of where to shop for the 2013 holiday season, according to CFI Group. Nearly half of shoppers say changes in their personal financial circumstances are affecting their holiday spending plans.
More than four in 10 consumers (42%) expect to do more than 40% of their holiday spending online. Among those who had already begun their holiday shopping by October, 51% planned to do 40% or more of their shopping online.
Millennials are more likely than baby boomers to start and finish their holiday shopping early. Almost half (45%) of millennials started shopping in October, compared with 37% of boomers who started that early. One in five boomers won’t finish shopping until late December, compared with 10% of millennials who expect to finish that late. Half (50%) of millennials spend 40% or more of their holiday budgets online, vs. 38% of boomers who do so.
Affluent shoppers (those with annual household incomes of more than $100,000) are more likely than low-income shoppers (those with incomes below $50,000) to start their shopping during the Black Friday/Cyber Monday weekend (19% vs. 11%). Almost half of low-income consumers (47%) begin their holiday shopping before or during October, compared with 32% of affluent consumers who shop this early.
Among consumers who planned to begin their holiday shopping in October or earlier, the most commonly cited reason is to spread out their expenditures over a longer period of time, according to Prosper Insights & Analytics research for the National Retail Federation.
Americans plan to spend an average of $737.95 on the 2013 winter holidays, down slightly from $752.24 in 2012. The majority of spending will be on gifts, an average of $536.85, down from $550.56 in 2012. Gifts for family members account for more than three-quarters (77%) of total gift spending [calculations by Research Alert].
A separate Gallup study on Americans’ anticipated spending for Christmas finds higher planned spending-an average of $786 on gift purchases in 2013, up from the $770 Gallup respondents estimated they’d spend when surveyed at this time in 2012. The majority of respondents (59%) expect to spend about the same as they did last year on Christmas gifts, while 25% say they’ll spend less, and 14% say they’ll spend more.
Nearly all Americans (96%) plan to buy gifts for family members, and 71% will buy them for friends, according to Prosper Insights & Analytics. Less than a third (31%) plan to buy gifts for co-workers, while 42% will buy them for others such as pets, babysitters, and postal workers. Nine in 10 Americans (91%) plan to purchase special foods for the holidays. More than three-quarters of holiday shoppers (77%) will purchase greeting cards, 69% will buy holiday decorations, and 45% will buy flowers or potted plants for the holidays.
Americans will divide their holiday shopping among a variety of retail channels. Top drivers in selecting where to shop are sales/discounts (35%), followed by merchandise selection (16%), merchandise quality (14%), and everyday low prices (13%), findings that are similar to those in the CFI Group research.
Americans ages 45-54 (70%) are the most likely of all age groups to shop for the holidays at discount stores, and those 18-24 are least likely (57%). Women are more likely than men to do holiday shopping at discount stores (69% vs. 61%), grocery stores/supermarkets (54% vs. 48%), drug stores (24% vs. 18%), and crafts or fabric stores (23% vs. 14%). Men are more likely than women to shop at electronics stores (38% vs. 22%).
On average, Americans plan to do 40% of their holiday shopping online. Almost one in four (24%) plan to do the majority of their shopping online. The majority of shoppers (57%) plan to take advantage of holiday sales to make additional, nongift purchases for either themselves or members of their families, spending an average of $227 on these purchases.
The gifts Americans most want to receive for the holidays include gift cards or certificates and clothing/accessories.
SOURCES: “Holiday Retail Spending Report,” October 2013, CFI Group, Terry Redding, VP Product Development, 625 Avis Dr., Ann Arbor, MI 48108; 734-930-9090; askcfi@cfigroup.com; www.cfigroup.com. Price: Available online at no charge.
Gallup poll, October 2013, Lydia Saad, Senior Editor, 901 F St., NW, Washington, DC 20004; 202-715-3030; www.gallup.com. Price: Available online at no charge.
“Monthly Consumer Survey,” October 2013, Prosper Insights & Analytics for the National Retail Federation. Prosper Insights & Analytics, Pam Goodfellow, Consumer Insights Director, 400 W. Wilson Bridge, #200, Worthington, OH 43085; 614-846-0146; info@goprosper.com; www.prospertechnologiesllc.com. National Retail Federation, Matthew Shay, President & CEO, 325 7th St., NW, #1100, Washington, DC 20004; 202-783-7971; shaym@nrf.com; www.nrf.com. Price: Available online at no charge.
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