More Consumers Plan to Cut Holiday Spending This Year
PORT WASHINGTON, N.Y.--(BUSINESS WIRE)--The NPD Group, Inc., a leading market research company, released the results of its annual survey of consumers’ holiday spending intentions. Thirty percent of consumers surveyed told NPD they ‘plan to spend less’ this holiday, which is a four point increase over last year’s results. (See charts at the bottom of the page.)
“That 4 percent increase is certainly a sign of the times. On the other hand, that 4 percent is not as dramatic as it could have been.” said Marshal Cohen, chief industry analyst, The NPD Group, Inc. “I think consumers will be looking for the right gift, rather than the most extravagant or expensive one. That combined with the soft numbers we are up against from holiday last year, and I think we will see growth, albeit a modest 0.5 to 1.5 percent.”
It is the 0.5 to 1.5 percent growth that takes us ‘back to the future’ and to holidays past when growth rates of 5 percent or more were unheard of and unexpected. For Holiday 2009, not only will actual spending levels go ‘back to the future’ but the kinds of gifts being bought will ‘go back’ to more traditional holiday gift items. “The survey results point to a return of more gifts being made of sweaters, fragrances, music, books, movies, and wallets, again,” said Cohen, “We are also seeing make-up and TV’s showing signs of growth. Other standouts are notebooks/netbooks. They have been growing and will continue to grow through the holiday.”
While there is no change in the top five categories, there is some movement in the bottom five categories. The survey results show some upward movement in consumer purchasing intentions for accessories, music, and fragrances. The number of consumers saying they will purchase those as gifts for holiday has shifted. Accessories moved up one spot from seventh to sixth this year, music was up one spot from eighth to seventh and fragrances moved up one spot to ninth this year.