US Retailers Cautious as Black Friday Nears
The fall has brought retailers little reason for optimism as we approach the holiday season. Falling housing prices, rising foreclosure rates, skyrocketing energy prices and numerous toy recalls are enough to make even a Pollyanna squeamish about the upcoming shopping season. Yet, with Black Friday only 11 days away, spending on gifts is expected to hold steady, according to the 22nd annual Holiday Survey from Deloitte.
While 41% of consumers surveyed expect to spend less this holiday season than last, overall gift spending is projected to be on par with 2006. Gift cards continue to top most shopper’s lists with 69% of consumers planning to purchase them, up from 66% a year ago. Holiday shoppers plan to purchase more gift cards this year – an average of 5.5 cards up from 4.6 a year ago, while the average gift card value projects to increase to $36.25, an increase of $6 from last year. According to Deloitte’s
U.S. retail leader Stacy Janiak:
Convenience is key. A gift card to a store that the recipient enjoys is a thoughtful gift that accommodates Americans’ limited time to shop.
The impact of recent product recalls from
China is starting to show. According to the study, 54% of consumers surveyed indicate that a product’s country of origin is important to them. Of this group, 82% say that recent concerns will influence their buying decisions on toys.While overseas quality issues were weighing on consumer’s minds, the recent credit crunch seems not to be on their minds. Few of those who plan to spend less mention the credit market problems as a key reason. Direct pocketbook issues such as higher food and fuel costs were given by lower income consumers, while home values and the stock market were indicated by those with greater wealth. While consumers overall were pessimistic about the economy, 85% of those surveyed felt secure in their jobs, probably the key factor in keeping spending high.
Details of the 22nd Annual Holiday Survey are posted on the Deloitte website.
You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
