Holiday shopping top 10 trends: Food, group gifts, eggnog parties
Filed under: Economy
Sure, consumers are sick of bad news and just want to go shopping -- but they're still waiting for the recession's other shoe to drop.And that means that this holiday season, shoppers will be very practical: giving food and other basics, cutting friends and co-workers off the gift list, and even using the gift cards they got for birthdays and graduations to pay for their holiday shopping. Analyzing new survey data, the National Retail Federation identifies 10 holiday shopping trends:
1. Americans aren't feeling an end to the recession. Regardless of the stock market's recovery or of economists' opinions, the average holiday shopper will spend $682.74, a 3.2 percent drop from last year's $705.01, according to a new NRF survey. "They're going to be watching what the unemployment [rate] is doing, and that's going to be their monitor about when the recession is over," said Phil Rist, executive VP of market research firm BIGResearch, which did the polling.
2. This year, it's all about the economy. Two-thirds of families say the economic situation will affect their holiday spending, said NRF VP Ellen Davis. Many will give group gifts to couples and families, and more practical gifts; some are making their own, Davis said. In this year's survey, the NRF added a question about thrift stores; the 11 percent of shoppers who mentioned them was a higher percentage than the group expected. Another surprise: many shoppers say they plan to use gift cards to pay for holiday shopping.
Many surveyed say they've cut down their gift list, and will instead bake, or host friends and co-workers at home for eggnog, said Rist. Fifteen percent of employed Americans know someone who's been laid off, which makes this a more practical solution for those who worry about how others will reciprocate a gift, he said.
3. Sales and promotions are king. More than 50 percent of Americans say sales or everyday low prices influence where they shop, said Davis. Retailers have scaled back inventory to levels not seen since 2003, to avoid panic markdowns, she said, "so what we're expecting is a bit of a dance" between stores and shoppers.
4. Cash is king, too. More than 25 percent of shoppers are paying with cash, the same rate as last year, but more than in 2007, said Rist. Shoppers are also using more debit cards and layaway to avoid using credit cards, which have recently increased minimum payments and interest rates, said Davis.
5. There will be less spending outside the family. While buying gifts for family members will drop only 2 percent, to $387.06 from $395.15 last year, the gift budget is down sharply for friends ($66.77, from $80.13) and co-workers ($19.26, from $22.63).
6. Candy and food spending is up ($90.26, from $80.28 in 2008), while other non-gift categories declined. Spending on decorations is expected to be $40.75, down from $43.45 last year, while greeting cards will drop to $26.77 from $27.39, and flowers to $17.05 from $19.10. Rist feels this is a factor of the trends for more practical gifts, like food, and of people inviting friends over instead of giving them gifts.
7. Giving gift cards is still popular, for two reasons, Davis said: Recipients can use them to buy necessities later, and shoppers can use them to treat themselves. One popular category that consumers have cut sharply, Rist noted, is restaurant gift cards; the NRF expects to have more research on that category this season.
8. The Internet influences one-third of all gift shopping. Shoppers go online to comparison-shop and to locate stores carrying items in one of every three gift purchases this holiday season, according to the data. The NRF's online arm, Shop.org, will release a study Thursday with more findings about online shopping, Davis said.
9. Surprise! 18-to-24-year-olds love department stores, and 70 percent expect to shop at them this season, the poll determined. The bad news: shopping there doesn't mean they'll buy there. Davis guessed that brand-conscious youngsters see these stores as a place to get high-quality items around the holidays. The stores are making an effort, with more sales and private-label merchandise this year, but young shoppers tend to shop late, which complicates their marketing efforts, she said.
10. We're not shopping for much beyond gifts. The number of consumers planning non-gift purchases this season is 53 percent, down from 57 percent last year -- and they plan to spend around $100, down from $120. Shoppers are just more practical, Rist said; 50 percent of those polled they're trying to shop more carefully, up from 38 percent who said that in 2008. "It's not necessarily in the budget this year to treat yourself," he said.
There may be pent-up demand in the market, but it won't help this holiday season. The unemployment rate -- nearly 10 percent and rising -- is still overwhelming consumers' confidence. "They're tired of the bad news, but it keeps coming," Rist said. "They're waiting for the next shoe to drop."
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Reader Comments (Page 1 of 1)
10-21-2009 @ 11:01AM
geneveroth5 said...
Christmas is history.
The dollar will be dead in less than three years.
Ther are more and more people who are just trying to figure out how to get food and shelter now.........much less thinking about giving gifts........
Get real...
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10-21-2009 @ 11:52AM
Greg said...
HERE'S THE ELEVENTH HOLIDAY TREND...........
THERE WON'T BE A CHRISTMAS.
BECAUSE PEOPLE ARE NOW TRYING TO FIGURE OUT WHERE THEIR NEXT MEAL WILL COME FROM........AND FINDING SHELTER.........MUCH LESS GIVING GIFTS.
AND HERE'S TREND NUMBER TWELVE.......
THE DOLLAR WILL BE DEAD AND WORTHLESS IN LESS THAN THREE YEARS.
SEE YOU AT THE REVOLUTION...........
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10-21-2009 @ 3:25PM
Olivia said...
Just becuase there is less money to spend on gifts it does not mean there will not be Christmas. Get Real.
There is Much more to the holiday than spending money, it just seems like sometimes this is forgotton. Hard times makes us remember though.
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10-21-2009 @ 6:05PM
David S. said...
Oh, please. Such alarmist rhetoric. People always overspend for Christmas, then whine about the debt they get into. Blame yourselves, no one else. Who needs to buy anything for co-workers anyway? There is one item to cut -- ugh. Can't stand most of the people I work with anyway, and the truth is, neither do most people.
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10-21-2009 @ 7:16PM
JUDY BEATY said...
It surely will be a hard holiday for most the unemployment rate is more like 30% everyone is hurting financially I guess
the best thing anyone could ask would be a family dinner.
I cant stand all the ripoffs and stock market games, the
President, Congress, and House of Representatives acting
like everything is fine I am sure they will all enjoy a fine
holiday. Everyone and every business is hurting. I do
not see any changes in the near future. I cant believe
they are letting fuel and energy prices rise. This will surely
create more misery for everyone.
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10-21-2009 @ 8:02PM
Adam said...
People are going to spend the same money they always do. The reason unemployment isn't going down is because the government keeps extending it. There's a million places hiring but people won't take those lower paying jobs because why would they. Lets see...sit at home and collect money for free or go to work and get the same amount of money..hmmm..tough choice.
If people are looking to buy there stuff for cheaper, why don't they just shop online at sites like sellbits.com or ebay
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10-21-2009 @ 8:29PM
TMS said...
I love how they try to HYPE this horrific economy with "funny figures" to try to MANIPULATE us into thinking everything is okay so we will SPEND, SPEND, SPEND to bail their GREEDY ASSES out! NOT!!!! POUND SAND!!!
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10-22-2009 @ 1:05AM
Sam said...
We are in the email gift card business and we saw last year that the number of eGift cards sold increased but the spending amounts went down. I'd expect the same this Christmas. People will still buy gift cards, but for lesser amounts and we will see more "utilitarian" ones sold like Walmart, Target, etc that can be used on essentials if needed. On the actual gift side, expect more socks and fewer golf balls by the same token. Regardless, Christmas is far from over... just a little less fun.
Sam
www.giftzip.com
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10-22-2009 @ 4:30AM
Jennifer said...
Maybe we all should give more of ourselves during the year to our friends and families instead of waiting for one day at the end of the year. Being nice and helping others is free and means a lot more than wasting money we don't have on materialistic items that people really don't want or need.
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10-22-2009 @ 5:37AM
Hmmmm said...
Honey, Christmas may be dead to you, but it still means the birth of THE SAVIOR, JESUS CHRIST! The "powers that be" turned it into buy & give time. It's not about that at all.
GOD BLESS AMERICA & THE WORLD!!!!
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10-25-2009 @ 5:31PM
jlkschmidt said...
I usually buy ahead and I have returned to more practical gifts.
Warm Pajamas for the great-grand parents, homemade jelly and fresh baked bread for the co-workers, a piece of money for the young adults, homemade blankets for the sisters and friends. For charity, I'm making homemade comfort blankets for the Children's hospitals for the kids in the emergency rooms with the flu virus. I buy at the thrift shops. I get canning jars, fabric pieces, clothing, an occasional dish, some with Christmas patterns and motifs. I like the idea of recycling stuff, saving money, and donating to charity by shopping at thrift shops. I like to send Christmas Cards but the postage is costly. E-cards make a lot of sense.
There will always be Christmas. A meal, a cheerful greeting, a church service, and hugs from my family and friends. That's Christmas. The gifts are just icing on the cake.
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10-22-2009 @ 8:13AM
Rocco220 said...
Christmas is always overrated, too much money spent. What happened to just celebrating what the Holiday i about the birth of Jesus. I for one will celebrate in Church with my family. If I do give gifts it is to family members, and it is something that I made for them. It could be a big plate of cookies for a family member who does not bake, or a quilt for another family member, I just customize it for which ever family member it is for. I may start there gift in Jan and when it is finished I wrap it and put it away. After all is said my family loves the fact that I thought of them enough to take the time to makethem something. It is cheaper and when you have 9 brothers and sisters so I need to save what ever I can.
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10-22-2009 @ 8:35AM
Joe said...
Maybe we should be celebrating what Christmas is really about and stop all the gift giving. We have been out of control for a long time. Let's get back to basics of life.
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10-22-2009 @ 1:58PM
scott said...
Hey Adam, Wake-up! Why would some take a job that pay's less than unemployment? Its 2nd grade math
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11-21-2009 @ 10:46AM
Jackie Smile said...
I think gift cards and personalized gifts will be the trend.They are simply and easily obtained. More time will be spend researching for deals and coupons this holiday shopping season.
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